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Full text of "Report of the Utilities Commission for the biennial period ..."

North Carolina State Library 




Digitized by the Internet Archive 
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North Carolina Slate Uiwaiy 

STATE OF NORTH CAROLINA 4i^C 

SEVENTH REPORT 

OF THE 



UTILITIES COMMISSION 



FOR THE 



BIENNIAL PERIOD, 1947-1948 



4^ 



•*.>^> 



NORTH CAROLINA UTILITIES COMMISSION 

Stanley Winrorne, Chairman 

Fred C. Hunter Robert Grady Johnson 

Charles Z. Flack. Chief Clerk 

Elsie G. Riddick, Assistant Chief Clerk 

Edgar Womble, Consultant and Rate Specialist 

Joe Homer Mullen, Director, Utilities 

Mary Shaw, Motor Carrier Clerk 

H. M. Nicholson, Director of Traffic 

F. A. Downing, Assistant Director of Traffic 

Julian Howard Hayes, Associate Rate Specialist 

D. W. Merritt, Associate Rate Specialist 

Reporters 

Portia Bonner Whitley 
Mrs. Mary Y. Huntley 

Secretaries 

Sophia P. Busbee Elizabeth Hayes 

Annie S. Ramsey Catherine E. Hall 

Grace Grantham Mrs. Hattie B. Smith 

Martha Gardner Rodwell Mrs. Joy W. Britt 

Frances Cameron Dorothy Lee Allen 

Josephine Gulley 

Motor Vehicle Inspectors 

JoLiN T. Armstrong. Sttpennsor 

J. C. Bowman Homer W, Brookshtrb 

Chas. H. Cox R. S. Davenport 

Broadus Glover C. P. Hathaway 

J. Neely Kincaid W. H. McSwatn 

Henry H. Morris E. L. Nicholson 

Fred N. Rankin 

J. W. Smith Wm. C. Twiddy 

C. B. Wade 



LETTER OF TRANSMITTAL 

December 31, 1948 



His Excellency, R. (tregg Chekkv, 
Governor of North Carolina, 
Raleigh, N. C. 



Sir 



As required by vSection 1065, Chapter 21, Consolidated Statutes, there is sub- 
mitted herewith report of the North Carolina Utilities Commission for the bi- 
cnniuni December 1, 1946, to December 31^ 1948 

Respectfully submitted, 

Stanley Winborne, Chairman. 
Fred C. Hunter, Commissioner. 
Robert Grady Johnson, Commissioner. 

Chas. Z. Flack, Chief Clerk. 



8^^?i 



GENERAL ORDERS v 

North Carolina Utilities Commission 
Raleigh, North Carolina 

TO ALL TELEPHONE COMPANIES UNDER THE JURISDICTION OF 

THIS COMMISSION: 

All telephone companies under the jurisdiction of this Commission are hereby 
directed to continue in force, under the direction of this commission, on and 
after January 1, 1947, the same priorities in telephone installations as set forth 
in Civil Production Administration Order U-2, until further notice. 

This, the 12th day of December, 1946. 

NORTH CAROLINA UTILITIES COMMISSION. 

IN THE MATTER OF RULE 17, RULES AND REGULATIONS OF THE 
COMMISSION— FREE TRANSPORTATION, PASSES, ETC. 

Order 

It has come to the attention of the Commission that Rule 17 of the Rules and 
Regulations of this Commission is being violated in that annual passes are being 
issued to people other than the ones provided for in Rule 17 and those designated 
by the Commission to receive passes. 

If your Company has violated this regulation you are instructed to immediately 
take up all outstanding passes not authorized by Rule 17 or G. S. 62-115. 

By Order of the Commission 
This 13th day of March, 1946. 

Chas. Z. Flack, Chief Clerk 

Ex Parte U-23 

RULES AND REGULATIONS. GOVERNING THE CONSTRUCTION, 

FILING AND POSTING OF FREIGHT AND PASSENGER TARIFF 

AND CLASSIFICATION PUBLICATION 

Supplemental Order 

By order of March 30, 1945 in the above Docket, the Commission adopted 
Rules and Regulations described in the caption hereof and in the body of the said 
adopting order. 

It now appearing, that the statutes under which Motor Carriers of Property 
have heretofore been regulated will be largely superseded by the North Carolina 
Truck Act of 1947, effective October 1, 1947, and good cause appearing therefor: 

It Is Ordered, That the said Rules and Regulations above described, a copy 
of which are appended hereto, be and the same are hereby prescribed and 
adopted. 

By order of the Commission. 
This 1st day of October, 1947. 

Chas. Z. Flack, Chief Clerk 



6 N. C. Utilities Commission 

AMENDMENT TO RULES AND REGULATIONS GOVERNING THE 

SUPERVISION. CONTROL AND OPERATION OF MOTOR VEHICLE 

CARRIERS AND DRIVERS OF MOTOR VEHICLES OF SUCH 

CARRIERS, DATED MARCH 29, 1940 

Rule 38. (J/0 Every vehicle on and after January 1, 1949, shall be equipped 
with one speedometer or tachometer which shall be operative with reasonable 
accuracy. 

Bv Order of the N. C. Utilities Commission. 
This the 7th day of September, 1948. 

Stanley Winborne, Chairman. 

Fred C. Hunter, Commissioner. 

R. G. Johnson, Commissioner. 
Attest : 
Chas. Z. Flack, Chicj Clerk. 

I hereby certify that a copy of the above rule and regulation has been filed 
in my office on this the 9th day of September, 1948, as provided by Chapter 
754 of the Session Laws of 1943. 

Thad Eure, Secretary of State. 

IN THE MATTER OF STANDEES ON BUSES 

Order 

Due to war conditions this Commission permitted bus franchise carriers to 
overload their buses. Some of the carriers have abused the privilege by over- 
loading when it was not necessary or when buses were available to run a second 
section. 

The franchise carriers represent to the Commission that business has fallen 
off to the extent that they have buses available for additional mileage or are 
seeking authority to make charter trips. 

Major companies were asked to submit a list of the cities and towns at which 
equipment is available. This list was furnished to the Commission and the 
Commission is of the opinion, after its investigation, that no bus should be 
permitted to leave a point where equipment is available with more than ten 
standees. 

It Is, Therefore, Ordered, That no company will permit one of its buses to 
leave either of the stations hereinafter set out under the heading of such com- 
pany with more than ten (10) standees: 

QUEEN CITY COACH COMPANY: 

Asheville Raleigh Greensboro 

Salisbury Fayetteville Lumberton 

Charlotte Jacksonville Wilmington 

Albemarle Winston- Salem 

Rockingham Asheboro 



Decisions and Adjustments of Coaipiaints 



ATLANTIC GREYHOUND CORPORATION: 

Asheville 
Mount Airy 
Charlotte 
Raleigh 
Goldsboro 



CAROLINA COACH COMPANY 

Charlotte 

Greensboro 

Roanoke Rapids 

Jacksonville Durham 



Wilmington 


Henderson 


Mooresville 


Sparta 


North Wilkesboro 


Lenoir 


Winston- SaTem 


Statesville 


Greensboro 




^/IPANY: 
Raleigh 


Wilson 


Leaksville 


Kannapolis 


Fayetteville 


Salisbury 



SEASHORE TRANSPORTATION COMPANY 

Wilmington New Bern 

lacksonville Beaufort 



Aurora 



SMOKY MOUNTAIN STAGES 



Asheville 
Sylva 



Murphy 
Brevard 



Charlotte 



NORFOLK SOUTHERN BUS CORPORATION: 
Washington Elizabeth City 



Williamston 



PARKWAY BUS COMPANY: 
Mount Airy Salisbury 



Morth Wilkesboro 



It Is Further Ordered, That carriers other than the ones hereinbefore set 
out shall not be permitted to operate a bus with more than ten standees from a 
point where equipment is available. 

This 13th day of February, 1947. 

Stanley Winborne^ Chairman. 
Fred C. Hunter, Commissioner, 
R. G. Johnson, Commissioner. 

Attest : 

Chas. Z. Flack, Chief Clerk. 
Docket No. 3913. 

IN THE MATTER OF REGULAR ROUTE FRANCHISE CARRIERS OF 
GENERAL COMMODITIES 



General Order 

Whereas the 1947 General Assembly by an Act entitled "The North Carolina 
Truck Act" completely revised the law relating to the transportation of property 



8 N» C. Uttittifs CoMArissiON 

by motor vehicle, which Act becomes effective on October 1, 1947, and provides, 
among other things, that the Commission shall issue new certificates under said 
Act in lieu of outstanding certificates issued under the present law, and further 
provides that certificates hereafter issued shall remain in effect until suspended 
or revoked for causes set out in the Act, obviating the necessity of renewal of 
such certificates every three years, as heretofore required by law; and 

Whereas many franchise certificates heretofore issued do not correspond 
with actual operations, in that in some instances certain operations have been 
suspended or abandoned, in other instances the highway numbers used in the 
description of certificates have long since been changed, and in other cases the 
highways described have been relocated, necessitating a correction or complete 
revision of many outstanding certificates to show operations as actually 
maintained ; 

It Is, Therefore, Ordered: 

1. That all franchise certificates heretofore issued authorizing the transporta- 
tion of general commodities over regular routes, and now in effect as authorized, 
be extended without application for renewal thereof and without further 
proceedings until October 1, 1947, 

2. That any and all operations that have heretofore been temporarily sus- 
pended, upon application to and with leave of the Commission, be resumed on 
or before July 1, 1947, and regularly operated thereafter unless notice shall have 
been given to the Commission in writing prior to said date that the operations 
so suspended have been abandoned. 

3. That on or before August 1, 1947, each carrier holding a franchise 
certificate authorizing the transportation of general commodities over regular 
routes shall file with the Commission 

(a) a current highway map of North Carolina on which each highway over 
which regular route operations are maintained is clearly traced by 
colored pencil, crayon or ink, and 

(b) an accurate description of each route over which the carrier is then 
regularly operating in the transportation of general commodities, 
giving the termini of each such route, the correct current number of 
each highway over which operations are regularly performed between 
such termini, and the off-route points, if any, served from said route. 
Each such route and off-route points served therefrom shall be described 
in the following form and detail : 

Route 1. From Salisbury to North Wilkesboro, viz: From Salisbury 
over U. S. Highway 601 to Mocksville; thence over U. S. Highway 
64 to its intersection with N. C. Highway 901 ; thence over N. C. 901 
via Harmony, to its intersection with N. C. 115; thence over N. C. \\S 
to North Wilkesboro, and return, serving all intermediate points. 

Off -route points, viz : Cooleemee from U. S. 601 over N. C. 801 ; 
Turnersburg from Harmony over U. S. 21. 

. 4. That all partners owning an interest in any franchise certificate shall enter 



Decisions and Adjustments of Complaints 9 

into a partnership agreement, as required by Section 14 of said Truck Act, and 
record the same in the office of the clerk of the superior court in the county in 
which the principal office of the partnership is located, a certified copy of which 
agreement shall be filed with the Commission on or before August 1, 1947. 

5. That a copy of this order be mailed by registered mail to each carrier of 
record holding a franchise certificate authorizing the transportation of general 
commodities over regular routes, and a copy thereof mailed to the North Carolina 
Motor Carriers Association, Raleigh, North Carolina. 

By order of the N. C. Utilities Commission. 

This the 13th day of May, 1947. 

NORTH CAROLINA UTILITIES COMMISSION 

Fred C. Hunter, Commissioner. 
ATTEST. 

Chas. Z. Flack. Chief Clerk ' . , 

Docket No. 4024 

IN THE MATTER OF RESTRICTED FRANCHISE CARRIERS 

General Order 

Whereas, the 1947 General Assembly by an Act entitled "The North Carolina 
Truck Act" completely revised the law relating to the transportaion of property 
by motor vehicle, which Act becomes efifective on October 1, 1947, and provides, 
among other things, that the Commission shall issue new certificates under said 
Act in lieu of outstanding certificates issued under the present law, and further 
provides that certificates hereafter issued shall remain in effect until suspended 
or revoked for causes set out in the Act, obviating the necessity of renewal of 
such certificates every three years, as heretofore required by law ; 

It Is, Therefore, Ordered: 

1. That all restricted franchise certificates heretofore issued and now in 
effect be extended, without application for renewal thereof and without further 
proceedings, until October 1, 1947, at which time such certificates will be 
superceded by certificates issued by the Commission under said Truck Act. 

2. That all partners owning an interest in any franchise certificate shall 
enter into a partnership agreement, as required by Section 14 of said Truck Act, 
and record the same in the office of the Clerk of Superior Court in the county 
in which the principal office of the partnership is located, a certified copy of 
which agreement shall be filed with the Commission on or before August 1, 1947. 

3. That a copy of this order be mailed to each carrier of record holding a 
restricted franchise certificate and a copy thereof mailed to the North Carolina 
Motor Carriers Association, Raleigh, North Carolina. 

Issued by order of the Commission. 
This 30th day of May, 1947. 

NORTH CAROLINA UTILITIES COMMISSION 
Fred C. Hunter, Commissioner. 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 4025 



10 N, C. Utilities Commission 

RULES FOR OBTAINING AUTHORITY TO OPERATE AS MOTOR 
CARRIERS UNDER THE TRUCK ACT 

General Order 

The magnitude of the task of passing upon applications and qualifications of 
approximately three thousand carriers, as required by the North Carolina Truck 
Act before for-hire license tags may be issued in the future, makes it necessary 
to adopt temporary rules relating particularly to procedure for qualifying under 
said Act ; and to that end, the following rules are hereby adopted : 

Rule 1. Exemptions Under Section 4. A carrier electing to operate 
under the exemptions set out in Section 4, and who proposes to limit 
his intrastate for-hire operations to the classes of service described in said 
Section, shall notify the Commission in writing of his purpose to so operate. 
Upon receipt of such notice, the Commission will issue to such carrier a 
certificate of exemption without further proceedings. No fees are required 
in such cases. 

Rule 2. Exemptions Under Section 5 (4). A certificate of exemption 
under Section 5, paragraph (4), may be issued by the Commission, upon 
its own motion, or upon application, but only after an investigation and upon 
finding of facts which warrant such exemptions. 

To warrant exemption of a particular carrier from regulation under the Act, 
it must appear that the for-hire operations of the carrier are so local, or are 
from and to points so isolated from the operations of regulated carriers, 
as not to substantially affect or impair uniform regulation by the Commission 
of transportation by motor carriers, or that some other particular conditions 
exist that warrant exemption from regulation. 

To warrant exemption of specific commodities, it must appear that the 
service is performed under such conditions or that the nature of the property 
is such that it is not practical to transport the same under the uniform 
regulations applying to carriers generally. 

In either case, the application for such exemptions must fully and clearly 
state the particular facts relied upon. No fees are required in such cases. 
Rule 3. Requirements For Obtaining For-Hire Tags. Every for-hire 
carrier must qualify under the Truck Act before for-hire tags may be issued 
in the future by the Department of Motor Vehicles. Common carriers and 
contract carriers may qualify only by applying to and obtaining from the 
Utilities Commission a certificate or permit, as provided by Sections 7, 8 or 
1 1 of the Act. The forms on which such applications must be made and 
instructions with respect thereto will be furnished by the Commission upon 
request. Exempted carriers may qualify only by obtaining certificates of 
exemption as provided in Rules 1 or 2. (Note: All common carriers arc 
required to pay 6 percent of gross receipts. Privilege taxes of other for-hire 
carriers are included in price of the tag.) 

Rule 4. Reports Of Operations. Common carriers making reports of 
their operations for one or more calendar months of 1946, as required by 
Section 7 (b), shall not include in such reports interstate shipments; that 
is, shipments which cross state lines, and shall not include any shipments 
which were made by trucks while leased or rented to other parties. 



Decisions and Adjustments of Complaints 11 

Rule 5. Notice Of Applications And Hearings. Upon receipt of an 
application for a certificate to operate as a common carrier or for a permit 
to operate as a contract carrier, the Commission will issue notice by mail 
of the nature and scope of the application to all carriers, other than 
exempted carriers, operating in the territory covered by the application, and 
the Commission will thereafter issue further notice by mail of the time and 
place of the hearing to the applicant and to all parties filing protests to the 
application, as required by Rule 6, a copy of which said notice will be mailed 
to the North Carolina Motor Carriers Association, Raleigh, North Carolina. 
Rule 6. Protests To Applications. No party shall be heard in opposition 
to any application for a certificate or a permit, nor be permitted to examine 
or cross examine witnesses, unless such party shall have at least ten days 
prior to the time fixed for the hearing filed a written protest and a copy 
thereof with the Commission, which protest shall clearly state the way and 
manner in which the application, if granted, will adversely affect the 
protestant. The protest shall be verified under oath of the protestant, and 
the verification shall show that a copy of the protest has been mailed to the 
applicant. 

Rule 7. Testimony. Testimony for or against the granting of an appli- 
cation may be in the form of exhibits, or oral testimony, or both, in addition 
to the required exhibits indicated on the application blanks. All exhibits 
shall be filed with the Commission in duplicate and shall contain neither 
argument nor conclusions, but only direct statements of facts relevant to the 
particular application. Witnesses shall not be examined on matters of 
common knowledge nor about facts which are obvious. The Commission will 
limit the time for direct and cross examination of witnesses when, in its 
judgment, such examinations are unnecessarily prolonged, and in the cases of 
protests which are substantially the same, will limit the cross examination of 
witnesses by protestants to one attorney or party protestant. Cumulative 
testimony or repetition of facts already in testimony will not be permitted. 
Rule 8. Granting Authority. Unless the applicant elects in writing 
before the conclusion of the hearing to accept only the authority for which 
application is made, the Commission will grant such authority as the evidence 
shows the applicant is entitled to receive; that is to say, if an applicant has 
misconceived the nature of his operation or proposed operation and has 
applied for a certificate to operate as a common carrier when the application 
should have been for a permit to operate as a contract carrier or vice versa, 
the Commission will disregard the form of the application and grant such 
authority as the applicant is entitled to receive upon the facts. 

Rule 9. Pending Applications. Applications heretofore filed under exist- 
ing law will be governed by the usual general rules now in effect, if such 
applications are heard before October 1, 1947, but such applications will not 
be set for hearing unless the applicant advises the Commission in writing 
on or before July 15, 1947, that he is ready for the hearing. 
Issued by order of the Commission. 
This the 18th day of June, 1947. 

THE NORTH CAROLINA UTILITIES COMMISSION 
Docket No, 4066 Chas. Z Flack, Chxej Clerk 



12 N. C. Utilities Commission 

BEFORE THE NORTH CAROLINA UTILITIES COMMISSION 
Raleigh, North CaroHna 

Docket No. 4066-C 

RE: EXEMPTIONS FROM REGULATIONS UNDER THE NORTH 
CAROLINA TRUCK ACT OF 1947 

General Order 

It appears to the Commission that one or more motor carriers operating in 
the State are engaged exclusively in the transportation of bank deposits, pay 
rolls, and other property and securities of unusual value in armored vehicles 
under police protection or other armed guards ; that there has been submitted to 
the Commission, in confidence, contracts for such specialized service with a large 
number of banks, commercial and industrial establishments, and that the safety 
and security of valuables so transported does not permit disclosure of the 
establishments served or the times when or the places where the service is or 
will be performed. 

Upon full consideration of the facts presented to the Commission, it is of the 
opinion that the specialized service of such carriers is not of such character as 
to substantially affect or impair uniform regulations of motor carriers generally 
and that considerations of security and the public interest require that the 
operations and services of such carriers be exempt from the rules and regulations 
that apply under said Act to motor carriers generally. 

It Is, Therefore, Ordered: 

1. That, pursuant to the power vested in the Commission by Section 5 (4) 
of the North Carolina Truck Act of 1947, all carriers operating armored vehicles 
and engaged exclusively in the transportation of bank deposits, pay rolls, and 
other property and securities of unusual value, be, and are hereby, exempt from 
the rules and regulations of the Commission. 

2. That this order shall constitute a certificate of exemption to any and all 
such carriers until revoked in the manner and for causes set out in said Section 
5 (4) of said Act. 

Issued by order of the Commission. 
This 25th day of March. 1948. 

Stanley Winborne, Chairman. 
Fred C. Hunter, Commissioner. 
R G. Johnson, Commissioner. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4066-C 



Decisions and Adjustments of Coaiplaints 13 

THE NORTH CAROLINA UTILITIES COMMISSION 
RALEIGH, NORTH CAROLINA 

IN THE MATTER OF EXCEPTIONS TO FINDINGS AND ORDERS 

MADE IN MATTERS HEARD BEFORE LESS THAN A MAJORITY 

OF THE COMMISSION OR BEFORE A MEMBER OF ITS STAFF 

General Order 

Docket No. 4066-D 

The following rule is hereby adopted and shall be construed in explanation of 
and supplemental to Rule 2 (2) of the Commission's Rules of Practice and 
Procedure : 

(a) All exceptions to the findings and/or order made in any matter heard 
before less than a majority of the Commission, or before a member of its 
staff designated by the Commission as an examiner to hear and take evidence 
in the matter, shall be addressed to THE NORTH CAROLINA UTILI- 
TIES COMMISSION, shall file the Docket number assigned to the matter 
involved, and shall give the name and address of the applicant or petitioner. 
Exceptions filed by protestants, in addition to the above information, shall 
give the correct name and address of each protestant joining in the 
exceptions. 

(b) The exceptions shall be in writing, shall be signed by a party thereto 
or by his attorney, and shall be filed with the Commission in duplicate (the 
original and a copy) within ten (10) days after receipt of a copy of the 
findings and order in the cause. Exceptions filed by protestants shall show 
that a copy thereof has been mailed or delivered to the applicant or 
petitioner. 

(c) Each exception shall be numbered, and each exception shall clearly 
and specifically state the grounds therefor. 

(d) Any party of record in the cause filing exceptions as herein provided 
shall be given opportunity to appear before the Commission and be heard. 
Such hearing shall be limited to the record including the exceptions so 
filed, and such hearing may be on oral argument, by brief, or both, as 
each party may elect. Oral argument in such cases may be limited to 
one hour, of which the applicant or petitioner shall be allowed thirty (30) 
minutes and the protestants thirty (30) minutes. 

Issued by Order of the Commission 
This 1st day of December, 1948. 

THE NORTH CAROLINA UTILITIES COMMISSION 
Attest : 

Chas. Z. Flack, Chief Clerk. 
Docket No. 4066-D. 

INSURANCE REQUIRED OF THE MOTOR CARRIERS FOR THE 

PROTECTION OF THE PUBLIC UNDER CHAPTER 1025, PUBLIC 

LAWS OF NORTH CAROLINA, SESSION OF 1947. 

General Order 
The Commission having under consideration Chapter 1025, Public Laws of 



14 N. C. Utilities Commission 

North Carolina, Session of 1947, relating to insurance required of motor carriers 
for the protection of the public, said Chapter 1025 of the Public Laws of North 
Carolina, Session of 1947, being applicable to motor vehicles carrying passengers 
for compensation other than motor vehicle carriers regulated under Article 6, 
Chapter 62, General Statutes of North Carolina, taxi cabs and motor vehicles 
used exclusively in the transportation of bona fide employees of an industrial 
plant to and from the places of their regular employment; and it further ap- 
pearing that the said Chapter 1025 requires insurance to be filed with the 
North Carolina Utilities Commission; to that end, 
It Is Hereby Ordered: 

1. That endorsement Form N. C. M. C. 24, relating to bodily injury liability 
and property damage liability shall be attached to, and made a part of, all 
such insurance policies, 

2. That this Order shall apply to all insurance policies issued and filed in 
connection with requirements of Chapter 1025, Public Laws of North Carolina, 
Session of 1947. 

By Order of the Commission. 
This the 31st day of October, 1947. 

Stanley Winborne, Chairman. 
Fred C. Hunter, Commissioner. 
R. G. Johnson, Commissioner. 
Attest : 

Chas. Z. Flack, Chief Clerk. 
Docket No. 4230. 



Decisions and Adjustments of Complaints 15 

INSURANCE REQUIRED OF THE MOTOR CARRIERS FOR THE 

PROTECTION OF THE PUBLIC UNDER CHAPTER 1025, PUBLIC 

LAWS OF NORTH CAROLINA, SESSION OF 1947. 

Supplement to General Order 

The Commission having under consideration General Order entered in Docket 
No. 4230, relating to insurance required of motor carriers for the protection 
of the public under Chapter 1025, Public Laws of North Carolina, Session of 
1947, is of the opinion that Endorsement Form NCMC 24, ordered to be 
attached to all insurance policies issued in accordance with said Order, does 
not fully meet the requirements and that certificate of insurance should be 
filed with the North Carolina Utilities Commission; and to that end. 

It Is Hereby Ordered : 

(1) That Form NCMC25, relating to bodily injury liability and property 
damage liability, shall be executed in triplicate, one copy retained by the Commis- 
sion, and the other two copies approved and returned to the insured. 

(2) That this Supplement to General Order in Docket No. 4230 apply to 
all insurance issued and filed in connection with the requirements of Chapter 
1025, Public Laws of North Carolina, Session of 1947, 

BY ORDER OF THE COMMISSION. 

This the 25th day of March, 1948. 

Stanley Winborne, Chairman. ' . 
Fred C. Hunter, Commissioner. 
R. G. Johnson, Commissioner. 

ATTEST : 

Chas. Z. Flack, Chief Clerk. 

Docket No. 4230-A 

DECISIONS AND ADJUSTMENTS OF COMPLAINTS 
Electric Light And Power Companies 

CAROLINA POWER AND LIGHT COMPANY— RESIDENTIAL 
THREE-PHASE SERVICE 

Order 
In this case the Commission has considered the request of Carolina Power & 
Light Company to be allowed to file a Residential Three-Phase Service Rider 
No. 8 to be used in conjunction with the Residential Service Schedule for 
residential customers requiring three-phase service. It appearing to the Commis- 
sion that there is a need for such a Rider on account of the development of 
residential service uses requiring three-phase service; now, therefore, 

It Is Ordered : 

That Residential Three- Phase Service Rider No. 8 of Carolina Power & Light 



16 N. C. Utilities Commission 

Company, a copy of which is hereto attached and made a part of this Order, 
is hereby approved, effective on bills rendered on and after July 1, 1948. 



This 22nd day of July, 1948. 



Stanley Winborne, Chairman. 
Fred C. Hunter^ Commissioner. 
R. G. Johnson^ Commissioner. 

ATTEST: 

Chas. Z. Flack, Chief Clerk. 

Docket No. 1493 

CAROLINA POWER AND LIGHT COMPANY— WITHDRAWAL OF 
CERTAIN RIDERS TO RATE SCHEDULES 

Order 

In this case the Commission has considered the request of Carolina Power & 
Light Company to be allowed to withdraw certain riders to rate schedules of 
the Company, and it appearing that no customers are being served under said 
riders and that there is no necessity for continuing the same; now, therefore, 

It Is Ordered: 

That Carolina Power and Light Company be and it is hereby allowed to 
withdraw and discontinue the following riders : 

Rider No. 4, Short term and temporary service 

Rider No. 8, Interruptible service 

This 4th day of May, 1948. 

Stanley Winborne, Chairman. 

Fred C. Hunter, Commissioner. 

R. G. Johnson, Commissioner. 
ATTEST : 

Chas. Z. Flack, Chief Clerk. 
Docket No. 2734 

CAROLINA POWER AND LIGHT COMPANY— CLARIFICATION OF 
THE APPLICATION OF COAL ADJUSTMENT RIDER 

Order 

In this case the Commission has before it consideration of a request by 
Carolina Power and Light Company that application of the Company's Coal 
Adjustment Rider No. 4 be clarified with reference to customers using separate 
meters for Commercial Cooking and Heating, and Miscellaneous General Service. 

It appearing to the Commission that the clarification will not change the 
billing of customers presently taking service through two meters ; now, therefore, 

It Is Ordered: 



North Carolina State Library 
Raleigh 

DECISIONS AND Adjustments of Complaints 17 

That if a customer elects to take service under either Schedule CC-1, 
Miscellaneous Commercial Heating and Cooking, or Schedule CC-3, Commercial 
Cooking and Heating, in conjunction with Schedule Gl-A, Miscellaneous General 
Service, then the kilowatt-hours used by such customer under both schedules 
shall be added together and the total thereof shall be the basis for applying Coal 
Adjustment Rider No. 4 in connection with the billing. 

This 12th day of May, 1948. 

Stanley Winborne, Chairman. 
Fred C. Hunter, Commissioner. 
R. G. Johnson, Commissioner. 

Chas. Z. Flack, Chief Clerk. 
Docket No. 2734 

CAROLINA POWER AND LIGHT COMPANY EX PARTE. 

i' ■ ' Order 

This day came Carolina Power and Light Company (hereinafter sometimes 
referred to as "Company") and presented its application, (a) for permission to 
issue and sell 90,935 additional shares of its common stock, by offering to the 
holders of its outstanding common stock of record at the close of business on 
October 29, 1947, the right to subscribe for and purchase such 90,935 additional 
shares of its common stock at the rate of one ( 1 ) share of such additional 
common stock for each ten (10) shares of common stock held of record on said 
date, at a price to be determined immediately prior to and in connection with a 
hearing to be held before the Securities and Exchange Commission, and by 
offering for sale to the public through underwriters, at the price to be so 
determined, any of said 90,935 shares of additional common stock which are not 
subscribed for by the holders of the Company's common stock within twenty 
days after the mailing of notice to them that subscription rights to purchase the 
same are available, and (b) for permission to increase the Company's common 
stock liability, carried on its books at $10,000,000.00 by an amount equal to the 
proceeds to be derived from the sale of such additional shares of common 
stock ; and upon motion of its counsel : 

It Is Ordered, that said Application be and is hereby filed, and that this 
matter be and is hereby docketed and set for immediate hearing upon said 
Application and upon the testimony and statements to be submitted for the 
consideration of the Commission; and 

Thereupon, this matter came on this day to be heard and was heard, and the 
Commission finds that the Company is a North Carolina corporation, owning 
and operating in North Carolina and in South Carolina facilities for generating, 
distributing, delivering and selling electric power and energy to the public for 
compensation, and that, as a public service corporation, the Company is subject 
to regulation by this Commission as to rates, service and security issues ; that 
the Company is authorized by its charter to issue 3,000,000 shares of common 
stock, without nominal or par value, and now has outstanding a total of 90,935 



9l*tC l%^>*«0^fc 



18 N. C. Utilities Commission 

shares of common stock, without nominal or par value; that the proposed 
issuance and sale by the Company of 90,935 additional shares of its common 
stock, in the manner set forth in Section II of the Application, are for lawful 
objects within the corporate purposes of the Company, are compatible with the 
public interest, are necessary or appropriate for or consistent with the proper 
performance by said Company of its service to the public as a public utility and 
will not impair the Company's ability to perform that service, are reasonably 
necessary and appropriate for such purposes, are in the public interest and in the 
interest of consumers and investors ; and the Commission being of the opinion 
that the prayers in the Application should be granted and that the proposed 
transaction should be approved and authorized; 

It Is Therefore Ordered, Adjudged And Decreed that, subject to any 
necessary action or approval by federal authorities, the Carolina Power and 
Light Company be and is hereby authorized, empowered and permitted: 

1. To issue and sell 90,935 additional shares of its common stock, by offering 
to the holders of its outstanding common stock of record at the close of business 
on October 29, 1947, the right to subscribe for and purchase such 90,935 addition- 
al shares of its common stock at the rate of one (1) share of such additional 
common stock for each ten (10) shares of common stock held of record on said 
date, at a price to be determined immediately prior to and in connection with, 
a hearing to be held before the Securities and Exchange Commission, and by 
offering for sale to the public through underwriters, at the price to be so deter- 
mined, any of said 90,935 shares of additional common stock, which are not sub- 
scribed for by the holders of the Company's common stock within twenty days 
after the mailing of notice to them that subscription rights to purchase the same 
are available. 

2. To increase the Company's common stock liability, carried on its books 
at $10,000,000.00, by an amount equal to the proceeds to be derived from the 
sale of such additional shares of common stock; 

3. To make the necessary and appropriate entries upon the books of the 
Company : 

(a) To record the issuance of all additional shares of common stock sold 
by a credit to the Common Capital Stock account of the total proceeds 
derived from the sale, 

(b) To record the proceeds derived from the sale of all additional shares 
of common stock sold by a charge to the Cash account in the total amount 
of such proceeds, 

(c) To take into account and to record the commissions and costs to be 
incurred in making the sale of such additional common stock, presently 
estimated at $135,000.00, by a charge to the Capital Stock Expense account 
and the credit of a like amount to the Cash Account ; and 

4. To use the proceeds to be derived from the sale of such additional shares 
of common stock for the construction of new facilities and the extensions and 
improvement of the present facilities of the Company. 



Decisions and Adjustments of Complaints 19 

It Is Further Ordered that this proceeding be and the same hereby is 
continued on the docket of the Commission without day for any other action 
that may be found or deemed necessary or advisable. 

Dated this 14th day of October, 1947. 

BY ORDER OF THE COMMISSION 

Stanley Winborne, Chairman. 
Fred C. Hunter, Commissioner, 
R. G. Johnson, Commissioner, 

Chas. Z. Flack, Chief Clerk, 

Docket No. 4206 

CAROLINA POWER & LIGHT COMPANY 
Order 

CaroHna Power & Light Company, a pubHc service corporation organized and 
existing under the laws of the State of North Carolina, having filed Application 
with the North Carolina Utilities Commission on December 19, 1947, for author- 
ity on or prior to March 8, 1948, to transfer, sell, and assign to the Town of 
Smithfield, a municipal corporation, its electrical distribution system within the 
mill village of Smithfield Manufacturing Company, and upon the date of such 
transfer to discontinue its electric service presently being supplied to its 
customers who now reside in said mill village and within the corporate limits 
of the Town of Smithfield, North Carolina, and who are named in Paragraph 
No, III of the Application, 

It Is Ordered, that the said Application filed herein by Carolina Power & 
Light Company be and it hereby is set for hearing at the hour of 10 o'clock, 
a. m., on Friday, January 30, 1948, in the office of the Commission, at Raleigh, 
North Carolina; and that notice of said hearing shall be given by service upon 
the customers of Carolina Power & Light Company within the mill village of 
Smithfield Manufacturing Company, by the Sheriff of Johnston County, of a 
formal Notice of Hearing to be issued by the Commission, such service to be 
made at least ten days in advance of the date set for the hearing by delivering 
a copy of said Notice of Hearing, together with a copy of the Application of 
Carolina Power & Light Company filed herein, to each of the parties named in 
Paragraph No. HI of the Application, or by delivering the same to someone of 
suitable age and discretion at the residence of each of said parties. 

This 13th day of January, 1948. 

Stanley Winborne. Chairman, 
ATTEST: 

Chas Z. Flack^ Chief Clerk. 
Docket No. 4270 

CAROLINA POWER AND LIGHT COMPANY 
Order 
Pursuant to an Order entered herein on January 13, 1948, this matter came on 



20 N. C. Utilities Commission 

for hearing and was heard at the hour of 10:00 A. M., on Friday, January 30, 
1948, in the office of the Commission, at Raleigh, North Carolina. At the hearing, 
formal appearances were entered by Charles F. Rouse and W. H. Weatherspoon, 
Attorneys, on behalf of the Carolina Power and Light Company, and by G. A. 
Martin, Attorney, on behalf of the Town of Smithfield, North Carolina; and 
there were no appearances by or on behalf of the customers of said Carolina 
Power & Light Company within the mill village of Smithfield Manufacturing 
Company, or anyone else, in opposition to the granting of the Application filed 
in this proceeding. The Commission thereupon found the following facts; 

1. That on January 15, 1948, the Sheriff of Johnston County, North 
Carolina, served notice of this hearing upon the customers of Carolina Power 
& Light Company within the mill village of Smithfield Manufacturing 
Company in the manner specified by the above mentioned Order entered 
herein on January 13, 1948; but that none of said parties has filed answer 
or made other appearance herein. 

2. That, as a result of an election held on September 20, 1947, the 
corporate limits of the Town of Smithfield recently have been extended to 
include the area embracing the mill village of the Smithfield Manufacturing 
Company; and that the Town of Smithfield desires to purchase, and Carolina 
Power & Light Company proposes to sell to the Town of Smithfield, the 
mill village electrical distribution system which said Carolina Power & 
Light Company owns and has been using to supply electric service to its 
customers within the mill village of Smithfield Manufacturing Company. 

3. That the Carolina Power & Light Company does not have a franchise 
for the distribution and sale of power and energy at retail within the 
corporate limits of the Town of Smithfield. 

4. That the Town of Smithfield maintains its own distribution facilities 
for the distribution and sale of power and energy to its residents; and that 
said Town of Smithfield is in a position and proposes to provide adequate 
electric service to the residents of the Smithfield Manufacturing Company 
mill village, upon connection of said mill village electrical distribution 
system with the distribution system presently maintained and operated by 
it within its corporate limits. 

5. That public convenience and necessity do not require and are no longer 
served by the ownership and operation by said Carolina Power and Light 
Company of its electrical distribution system within the mill village of 
Smithfield Manufacturing Company, which is now within the corporate 
limits of the Town of Smithfield, North Carolina 

And the Commission, after notice and hearing as required by law, and upon 
the foregoing findings of fact, having concluded that the Application filed herein 
by Carolina Power & Light Company should be granted. 

It Is Ordered that Carolina Power & Light Company be and it hereby is 
authorized on or prior to March 8, 1948, to transfer, sell, and assign to the 
Town of Smithfield, North Carolina, its electrical distribution system within the 
mill village of Smithfield Manufacturing Company, which is within the corporate 



Decisions and Adjustments of Complaints 21 

limits of the Town of Smithfield, North CaroHna, and upon connection of said 
mill village electrical distribution system with the distribution system presently 
maintained and operated by the Town of Smithfield, on or after the date of 
such transfer, to discontinue its electric service presently being supplied to its 
customers within said mill village. 



This 30th day of January, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

By Order of the Commission 
Chas. Z. Flack, Chief Clerk 
Docket No. 4270 

CAROLINA POWER & LIGHT COMPANY— EX PARTE. 

, Order 

This day came Carolina Power & Light Company (hereinafter sometimes 
referred to as "Company") and presented its Application for authority to issue 
and sell to the Equitable Life Assurance Society of the United States (herein- 
after sometimes called "Equitable") its promissory notes in the principal amount 
of $7,000,000; and upon motion of its counsel: 

It Is Ordered, that said Application be and is hereby filed, and that this 
matter be and is hereby docketed and set for immediate hearing upon said 
Application and upon the testimony and statements to be submitted for the 
consideration of the Commission; and 

Thereupon, this matter came on this day to be heard and was heard, and the 
Commission finds that the Company is a North Carolina corporation, owning 
and operating in North Carolina and in South Carolina facilities for generating, 
distributing, delivering and selling electric power and energy to the public for 
compensation, and that, as a public service corporation, the Company is subject 
to regulation by this Commission as to rates, service and security issues; that 
the proposed issuance and sale to Equitable by the Company of its promissory 
notes in the principal amount of $7,000,000, for the purposes and in the manner 
stated in Section I of its Application, are for lawful objects within the corporate 
purposes of the Company, are compatible with the public interest, are necessary 
or appropriate for or consistent with the proper performance by said Company 
of its service to the public as a public utility and will not impair the Company's 
ability to perform that service, are reasonably necessary and appropriate for 
such purposes, are in the public interest and in the interest of consumers and 
investors: and the Commission being of the opinion that the prayers in the 
Application should be granted and that the proposed transaction should be 
approved and authorized: 

It Is Therefore, Ordered, Adjudged And Decreed that, subject to any 
necessary action or approval by other state or federal authorities, Carolina 
Power & Light Company be and is hereby authorized, empowered, and permitted: 



22 N. C. Utilities Commission 

1. To borrow from The Equitable Life Assurance Society of the United 
States on April 15, 1948, the principal amount of $7,000,000: 

2. To issue and deliver to The Equitable Life Assurance Society of the 
United States, as evidence of such borrov^ing, its promissory notes, which 
will be uniformly dated as of the date of delivery, and which will bear inter- 
est payable semi-annually from their date at the rate of 3%% per annum, 
$437,500 principal amount of said promissory notes to mature on each April 
15th from April 15, 1952, to April 15, 1957, both inclusive, and the remaining 
$4,375,000 principal amount thereof to become due and payable on April 15, 
1958: and 

3. To use the proceeds to be obtained from the issuance and sale to 
Equitable of said $7,000,000 principal amount of its promissory notes for 
the following purposes : 

(1) To pay the entire balance of the Company's outstanding bank 
loans in the amount of $2,500,000 at their maturity, i. e., April 15, 1948, 

(2) To finance in part the Company's program for the construction 
of new facilities and the extension and improvement of its present 
facilities. 

It Is Further Ordered that this proceeding be and the same hereby is 
continued on the docket of the Commission without day for any other action 
that may be found or deemed necessary or advisable. 

Dated, this 23rd day of February, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

By Order Of The Comaiission 
Chas. Z. Flack, Chief Clerk 
Docket No. 4316 

APPLICATION OF CAROLINA POWER AND LIGHT COMPANY FOR 
AUTHORITY TO ISSUE AND SELL TEN-YEAR NOTES 

Supplemental Order 

In this case the Carolina Power and Light Company comes before the 

Commission on this day, April 14, 1948, and submits an amendment to its 

application filed on February 20, 1948, in Docket No. 4316, with the request 

that said amendment be given approval nunc pro tunc by this Commission. Order 
in this case was issued February 23, 1948. 

For the words, "an agreement dated as of March 1, 1948," appearing in line 
12 of Paragraph 1 of application, the amendment would substitute the following: 
"an oral agreement". 

It appears to the Commission that said amendment submitted is necessary and 
proper and should be accepted and approved by this Commission, therefore 



Decisions and Adjustments of Complaints 23 

It Is Ordered that the amendment referred to above submitted by the Carolina 
Power and Light Company is hereby accepted, approved, and made a part of the 
record in Docket No. 4316 nunc pro tunc. 



This 14th day of April, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. F"lack, Chief Clerk 
Docket No. 4316 

APPLICATION OF CAROLINA POWER AND LIGHT COMPANY FOR 

AUTHORITY TO INCORPORATE A COAL CLAUSE IN CERTAIN OF 

ITS RATE SCHEDULES 

Order 
APPEARANCES: 

For Petitioner : 

W. H. Weatherspoon, Attorney 
Louis V. Sutton 

For Opposition : 

22 Textile Mills ,' " . • 

William T. Joyner, Attorney 
Royal Cotton Mills 

Willis Smith, Jr. 
Buckeye Cotton Oil Co. 

J. F. Moody 
Martel Mills Corporation 

Oscar J. Mooneyham 

This case came before the Commission on the application of the Carolina 
Power and Light Company for authority to put into effect a coal clause Rider 
applicable to certain of its rate schedules and, after proper notification to 
interested parties by newspaper advertisements, was heard by the Commission, 
en bloc, on March 26, 1948, in the offices of the Commission at Raleigh. 

The Company in its application asked that it be permitted to put into effect 
the following Rider, designated as Coal Adjustment Rider No. 4: 

"Applicability : 

This Rider is applicable to and becomes a part of Rate Schedules G-IA, 
G-2A, G-IC, P-16, P-27, P-28, P-31A, P-37, P-39, P-40 and P-41. 

"Billing : 

The net monthly bill, computed under the schedule with which this 

Rider is applicable, shall be increased by .0065c per kilowatt hour, for 

those kilowatt-hours used by customer during the current billing month in 



24 N. C. Utilities Commission 

excess of 15,000 kilowatt-hours, for each whole 10c above $6.00 per short 
ton in the average cost of coal burned during the twelve months period 
ending with the second preceeding month. Whenever the heating value per 
pound of coal as received is less than 13,500 b. t. u., the cost may be 
adjusted to the equivalent of 13,500 b. t. u. per pound." 

In its application it is said, "Petitioner has been seriously affected in its 
operations in that the general expansion in various types of industry and business 
within the area has made and continues to make necessary the construction by 
petitioner of substantial additions to its facilities, including generating capacity 
and transmission, distribution and other facilities at a time when the cost of 
construction is far in excess of such cost during any prior period of its history ; 
and operating costs, including the cost of coal, salaries and wages and all 
materials and supplies necessary for operating and maintenance purposes, are at 
an all time high. 

"Petitioner's decreasing net from operations has produced and is producing a 
critical situation in that, among other things, petitioner must continue to pay 
dividends and maintain an unimpaired credit position in order to obtain the large 
amount of new money on the market for the construction of additional facilities 
which cannot be postponed. On the basis of actual needs, petitioner expended for 
construction purposes in 1946, $5,140,653; in 1947, $8,455,858; in 1948. it is 
estimated that such expenditures will be $8,500,000; in 1949, will be $20,000,000, 
including the amount necessary to complete the new 90,000 kw steam-electric 
generating plant near Lumberton, North Carolina, and large amounts during 
succeeding years. Most of this must be new money and be obtained through the 
sale of additional securities on the market and petitioner's ability to market 
securities will depend upon its financial position and earnings. 

"The decreases in petitioner's net earnings is occasioned by increases in the 
cost of coal, labor, material and supplies and by insufficient and non-compensa- 
tory rates charged by petitioner for service to the larger customers. The largest 
customers of petitioner, whose uses are such as to entitle them to the rates in 
the lowest blocks of the schedules applicable to such customers, are receiving 
energy at a price that is less than present costs of coal used in generating the 
energy supplies to them. 

"During 1947 petitioner's total operating revenues exceeded such revenues for 
the year 1946 by $2,746,879, but petitioner's operating expenses during 1947 
exceeded such expenses for 1946 by $3,058,030. It is estimated that for the year 
1948 the total operating revenues of petitioner will exceed such revenues for the 
year 1947 by $2,460,000, but it is also estimated that petitioner's operating 
expenses for 1947 will be increased by $3,415,000." 

It is also stated that the petitioner's cost of coal for the year 1947 exceeds the 
cost for the year 1946 by $1,440,460 and that the estimated cost of coal for the 
year 1948 will exceed the cost of the 1947 year by $1,500,000. 

Louis V. Sutton, president of the Company, was offered as a witness and his 
testimony corroborated the allegations set forth in application. 

Witness Sutton also testified that in 1947 their profits were larger than they 



Decisions and Adjustments of Complaints 25 

otherwise would have been due to the fact that his company, in contemplation 
of an increase in the price of coal, had purchased a large amount of coal at a 
cheaper price, which coal lasted through the first four months of 1947. 

The witness further stated on cross-examination that the reason that the profits 
of the Company were greater in January and February of 1948 than they were 
during the same months of 1947 was due to the unusual amount of water and to 
the fact that less money was spent for labor and material owing to the extremely 
bad weather which prevailed during that period. He contended that the excess 
profits which accumulated in January and February 1948 were due to the 
aforesaid causes and would be more than consumed during the succeeding months. 

The witness testified that the textile industry and large power customers used 
more than half of the current sold but that they paid only one third of the 
Company's revenue. 

Witness, in response to the question as to how the Company kept out of the 
red if the large power and textile users were not paying their way, said that 
the difference in revenue needed was made up by the sales to residential and 
general commercial customers. 

Witness presented Exhibit No, 8, which showed a list of coal clauses in effect 
in the rate schedules of some 50 electric utilities operating in various states. 
Witness pointed out that the basic coal price in this list ranged from $1.62 to 
$6.00 per ton and that only one reached the $6.00 mark, the basic price used in 
the clause proposed by his company and that in the majority of the cases cited 
the basic price was less than $4.00 per ton. 

The witness stated that the coal clause as proposed would increase the Com- 
pany's gross revenue for the balance of 1948 in the amount of $795,000 which 
would net the Company about $500,000. For the year 1949 he estimated that the 
gross increase in revenue would amount to $1,250,000 with a net increase of 
$800,000. 

Witness estimated that the proposed coal clause would increase the bills of 
customers affected on the average of about 15 or 16 per cent for the remainder 
of 1948. 

C. S. Tatum, of the Pilot Mills, Raleigh, testified in opposition to the proposed 
coal clause. He objected to the coal clause on the grounds that it did not apply 
uniformly to all consumers but placed the entire increase on the textile and 
large power users. The imposition of the additional rate charge proposed by 
Rider, he said, would threaten the mill with disaster if the mill were forced to 
change from its present three shift basis to a one shift basis. 

Witness Tatum, under cross-examination, did not have available the percentage 
relationship that cost of current bore to entire operating expenses of the mill, 
but pursuant to request made on the record, Mr. Tatum supplied the information 
to the petitioner which is incorporated in the brief of the petitioner and which 
reads as follows : 

"In response to your request, we have checked our power cost and find for the 
year 1947, when running three shifts and Saturdays, on coarse yarn fabrics, it 



26 N. C. Utilities Commission 

was 1.365 per cent of cost. Since we are now running finer yarn, light weight 
fabrics, our cost man has figured that on a single shift operation with your 
proposed increased rates, the power cost would jump to 3 per cent of the total 
cost." 

Halbert M. Jones, witness for the Waverly Mills of Laurinburg, testified that 
the proposed increase would vitally affect the operation of his mill owing to the 
keen competition existing in the textile industry and that even a slight increase 
in cost of power might work disaster. He stated that the proposed Rider would 
increase his cost of current by approximately 28 per cent. 

The testimony was concluded at noon Saturday, March 20, 1948, 

The protestants and the petitioner were granted leave to file briefs, said brief 
to be filed not later than the close of business on Wednesday, March 24, Briefs 
were filed within the time limit. 

From the testimony adduced and other data on file in this office the Commission 
finds : 

1. That the petitioner needs an increase in revenue, but not in the amount 
requested. 

2. That some textile and large industrial users are getting current at a 
non-compensatory figure. 

3. That a coal clause should be permitted but the base price should be $7.00 
per ton. 

4. That the net profits of the Company for the months of January and 
February, 1948, exceeded the net profits for the corresponding months for 1947 
by $48,000, which if continued for the next ten months on the same basis, would 
give a return, based on net plant investment, of approximately 4.4 per cent ; 
however, as before stated, witness for the company contended that this financial 
showing for January and February of 1948 was due to abnormal conditions and 
would be wiped out in succeeding months. 

Upon information furnished by the petitioner the coal clause differential at 
the present time will, on an annual basis, apply to 410,000,000 kilowatt hours of 
current used by textile plants and 190,000,000 to current used by large industrial 
users. 

The application of the formula in the coal clause gives the cost of coal today 
as $8.20 per ton, while the current price of coal is $9.20. The coal clause proposed 
by the company today produces a differential of 1.43 mills; the cost clause 
provided by the Commission gives a difi^erential of .78 mills. 

Under the petitioner's differential the petitioner would receive an annual gross 
increase in revenue of $858,000 and a net of $470,000. 

Using only sales to textile plants the annual revenue increases would be as 
follows : 

Under the petitioner's proposal the gross increase would be $586,300 and net 
of $321,175- 



Decisions and Adjustments of Complaints ZJ 

Under the differential provided by the Commission the gross increase would 
be $320,000 and net of $185,300. 

The contention that the proposed increase should be spread alike on all classes 
of service appears plausible, but from a sense of equity it is not compelling. 

Electric rates are not uniform and practical rate-making does not require that 
they be made uniform. The measure of rate is determined by the various elements 
which enter into the service that is to be performed. To the uninitiated they 
often appear paradoxical. 

In view of the foregoing, therefore 

It Is Ordered, That effective on billings on and after date of this order, the 
Carolina Power and Light Company is hereby authorized to put into effect the 
following Rider : 

Coal Adjustment Rider No. 4 
Applicability : 

This Rider is applicable to and becomes a part of Rate Schedules G-IA, G-2A, 
G-IC, P-16, P-27, P-28, P-31A, P-37, P-39, P-40 and P-41. 
Billing: 

The net monthly bill, computed under the schedule with which this Rider is 
applicable, shall be increased by .0065c per kilowatt-hour, for those kilowatt- 
hours used by customer during the current billing month in excess of 15,000 
kilowatt-hours, for each whole 10c above $7.00 per short ton in the average cost 
of coal burned during the twelve months period ending with the second preceed- 
ing month. Whenever the heating value per pound of coal as received is less 
than 13,500 b. t. u., the cost may be adjusted to the equivalent of 13,500 b. t. u. 
per pound. 

It Is Further Ordered, That this clause shall be retained until and after the 
petitioner shall have filed with this Commission four quarterly income state- 
ments beginning with March 31, 1948, which statements shall show revenue 
and expenses in detail, and within 30 days after the filing of any such quarterly 
statement, the Commission reserves the right to issue an order either increasing 
or decreasing the base rate of coal mentioned in said Rider. 



This the 8th day of April, 1948. 



ATTEST: 

Chas. Z. Flack, Chie] Clerk 



Stanley Winborne, Chaiffitan 
Fred C. Hunter, Commissioner 



COMMISSIONER JOHNSON, DISSENTING: 

While I concur in the findings and conclusions of the Commission as to the 
need of additional revenue and as to the amount authorized by the Commission 
in this order, I dissent as to the application of the increase in that it applies to 
only certain customers. 



28 N. C. Utilities Commission 

The evidence discloses that there are certain customers now being served by 
the petitioner who are buying electric energy below the cost of production. The 
petitioner seeks to raise the rates by the insertion of the coal clause on some of 
these customers but not upon all of them. 

I am firmly convinced that all subscribers of an electric utility who are not 
paying the actual cost of production should have their rates increased in an 
amount that would assure the utility of enough revenue to pay out-of-pocket 
cost. The sale of electric energy to customers who do not pay the out-of-pocket 
cost constitutes an undue burden upon other customers. Electric customers are 
entitled to raise commensurate with the cost of service to each, but for all users 
the schedule should provide for adequate minimum charges to assure the company 
of a reasonable return. The customers of the petitioner, of course, are entitled 
to the service at the lowest rates possible, but the rates must be sufficient to bear 
the burden of rendering the service. The burden should not be placed on other 
customers. 

Whatever amount of money is necessary to give the petitioner a fair rate 
should be imposed upon all customers who are not paying the cost of production 
and not against a selected few. The application of a fuel clause to a certain class 
of customers and not applying it to others who are not now paying the out-of- 
pocket cost is discriminatory. 



R. G. Johnson, Commissioner 



This 12th day of April, 1948. 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4327 

APPLICATION OF DOMESTIC ELECTRIC SERVICE, 
INCORPORATED FOR AN ADJUSTMENT IN ITS ELECTRIC RATES 

AND CHARGES 

Order 

APPEARANCES: For Applicant: 
Jay Powell 

For Protestants : 
None. 

In this matter the Domestic Electric Service, Inc., (herein after referred to 

as company or applicant) comes before the Commission asking for authority to 

increase its residential minimum charge from $1.00 to $1.50 per month; to 

increase its commercial minimum charge from $1.00 to $2.00 per month; and to 
adjust its commercial rate to read as follows: 

6.0c per KWH for the first 300 KWH 
4.8c per KWH for the next 700 KWH 
3.6c per KWH for the next 3000 KWH 
2.0c per KWH for all additional 



Decisions and Adjustments of Complaints 29 

The hearing was properly advertised. No one appeared in protest. 

It is set out in the appHcation that increased costs of materials and labor have 
placed the company in a position where it is unable to maintain its plant in 
proper condition. 

The witness for the applicant testified to the following: 

1. That the company is losing money every day. 

2. That the increase requested would amount to approximately $2,500 annually. 

3. That several months ago the city of Rocky Mount increased its wholesale 

rate to the applicant. 

4. That the rates requested are the same as those now in effect by the city 
of Rocky Mount in its rural areas. 

From the foregoing testimony and other available information the Commission 
finds that the proposed rates and charges are fair and reasonable and should be 
allowed. 

Wherefore, it is ordered that the rates and charges specified above be, and the 
same are hereby, authorized and approved and shall become effective on all 
billings on and after September 1st, 1948. 

This 17th day of August, 1948. 

Stanley Winborne, Chairman „ 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4453 

APPLICATION OF DUKE POWER COMPANY FOR AUTHORI- 
ZATION UNDER CHAPTER 307, PUBLIC LAWS 1933, TO ISSUE 
BONDS AND COMMON STOCK 

Order 

Upon consideration of the application of Duke Power Company for authoriza- 
tion to issue the securities described in the Application; 

It appears to the Commission that: 

(a) Applicant proposes to issue the following securities, to-wit: (1) 252,512 
shares of common stock without nominal or par value; (2) $40,000,000 of 
First and Refunding Mortgage Bonds, 2.65% Series Due 1977. 

(b) The proposed 252,512 shares of common stock without nominal or par 
value will be issued by applicant pursuant to the provisions of its Certificate of 
Incorporation which authorize the issuance of said stock. The proposed new 
shares of common stock will in all respects rank equally with the outstanding 
shares of such stock; the holders of the new shares will participate in dividends 



30 N. C. Utilities Commission 

equally with the holders of the outstanding shares, and will have the same 
voting privileges and the same liquidation rights. The new shares of common 
stock, on payment of the full consideration therefor and on the issuance thereof, 
will be full-paid and non-assessable. 

(c) The proposed 252,512 shares of common stock without nominal or par 
value will be offered for subscription, at the price of $82.50 per share to the 
holders of applicant's outstanding common stock at the rate of one share of new 
common stock for each four shares of the outstanding common stock. Rights to 
purchase such additional stock will be evidenced by transferrable Subscription 
Warrants to be issued to the stockholders entitled thereto, and they or their 
assignees will be given at least fifteen (15) days from the record date for the 
issuance of such warrants within which to exercise them. Any stock not pur- 
chased pursuant to said Subscription Warrants will be purchased at the price of 
$82.50 per share by Duke Endowment, a common law inter vivos trust estab- 
lished by Mr. James B. Duke by Indenture dated December 11, 1924. On receipt 
by applicant of the consideration for the shares of common stock, $75.00 per 
share will be credited to applicant's Common Stock Capital Account, and the 
balance of $7.50 per share will be credited to an account entitled, Premiums and 
Assessments on Capital Stock. 

(d) The proposed $40,000,000 of First and Refunding Mortgage Bonds, 
2.65% Series Due 1977, will be created and issued under and pursuant to the 
provisions of an Indenture dated December 1, 1927, duly executed by applicant to 
Guaranty Trust Company of New York, as Trustee, as supplemented and amended 
by Supplemental Indenture to be made and executed between the same parties 
and to be dated September 1, 1947. The proposed bonds will be dated September 
1, 1947; will become due and payable September 1, 1977; will bear interest at the 
rate of 2.65% per annum from date, payable semi-annually on the 1st day of 
March and the 1st day of September in each year; will contain the terms and 
be of the form and tenor set forth and shown in said Supplemental Indenture 
to be dated September 1, 1947; will be subject to all the provisions of said 
original Indenture dated December 1, 1927, as amended and supplemented by 
said supplemental Indenture : and, by virtue of said original Indenture, as so 
amended and supplemented, will constitute a first lien on substantially all of 
applicant's fixed property and franchises. The proposed bonds will be sold pri- 
vately for the principal amount thereof plus accrued interest from September 1, 
1947 to the date of sale, if sold after September 1, 1947, as follows: $30,000,000 
principal amount to the Duke Endowment and $10,000,000 principal amount to 
Metropolitan Life Insurance Company. 

(e) The purpose of the issuance of the proposed securities is to enable 
applicant to redeem and refund its presently outstanding $30,000,000 of 3^4% 
Series Bonds Due 1967, and to finance in part an extensive construction program 
which applicant has undertaken in order that it may adequately provide for the 
increased demands upon it for service in the territory in which it operates. 

The Commission having considered said Application, which is duly verified, 
and having considered the records of the Commission relating to applicant and 
its operations, finds that : 

1. Applicant is a corporation duly organized and existing under the laws of 



Decisions ^nd Adjttstments of Complaints 31 

the State of New Jersey. It is duly authorized by its Certificate of Incorporation 
to engage in the business of generating, transmitting, distributing and selling 
electric power and energy, and in the business of operating manufactured gas 
systems, water supply systems and urban transportation systems. It is duly 
domesticated in the State of North Carolina and also in the State of South 
Carolina, and is duly authorized to conduct and carry on business, and is con- 
ducting and carrying on the business authorized by its Certificate of Incorpora- 
tion, in each of said States. It is a public utility under the laws of this State, and 
in its operations in this State is subject to the jurisdiction of this Commission. 

2. The proposed securities will be issued by applicant to enable it to refund 
its existing bonded indebtedness at a lower rate of interest, and to finance in 
part the construction program hereinbefore referred to, which are lawful objects 
within the corporate purposes of applicant ; their issuance is compatible with 
the public interest ; is necessary and appropriate for, and consistent with, the 
proper performance by applicant of its service to the public as a utility, and will 
not impair its ability to perform that service; and is reasonably necessary and 
appropriate for such purpose and is in the public interest. 

It Is, Therefore, Ordered By The Commission That Duke Power Company 
be, and it hereby is, authorized to issue and sell the proposed securities herein- 
before described for the considerations and upon the terms and conditions 
hereinbefore set forth. 

By Order Of The Utilities Commission Of The State Of North Caro- 
lina, this 6th day of August, 1947. . , 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk ■ ^ 

NORTH CAROLINA 
UTILITIES COMMISSION 

I, Charles Z. Flack, Chief Clerk of the North Carolina Utilities Commission, 
do hereby certify the foregoing and attached (5 sheets) to be a true copy from 
the records of this office, viz : 

Order Approving Application of Duke Power Company for Authorization under 

Chapter 307, Public Laws 1933, to Issue Bonds and Common Stock, 

In Witness Whereof I have hereunto set my hand and affixed the official seal 
of the Commission. 

Done in ofiice at Raleigh, this 6th day of August in the year of our Lord 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4132 



32 N. C. Utilities Commission 

DUKE POWER COMPANY 

THE SALE OF FACILITIES AND TRANSFER OF CUSTOMERS 

WITHIN THE EXTENDED CITY LIMITS OF NEWTON, NORTH 

CAROLINA, TO SAID TOWN 

Order 

This cause coming on to be heard before the UtiHties Commission of the 
State of North CaroHna, upon the petition of Duke Power Company for 
authority to transfer certain customers and sell certain property of the Company 
to the Town of Newton, the Commission finds ; 

I. 

The Duke Power Company, a duly organized public service corporation 
authorized to do business in this State, filed with this Commission on September 
8, 1947 a duly verified petition in the above entitled proceeding. On September 
16, 1947, this Commission directed that this application be heard at the office of 
the Commission in Raleigh, at 12 :00 o'clock noon on October 2, 1947, and 
further directed that notice of said hearing be published in the Newton Observer 
and the Catawba News-Enterprise. Pursuant to said order, notice of this hearing 
was duly published in the Newton Observer on September 26th, 1947, and in the 
Catawba News-Enterprise on September 19-23, 1947. 

IL 
The town of Newton, N. C. extended its corporate limits effective July 1, 1947. 
Within the area added to the town limits by said extension, the Duke Power 
Company was, at the time of said extension, and for some time prior thereto 
had been, furnishing electric service to the residences and business concerns 
within said area. By letter dated June 26, 1947, the Town of Newton notified 
the Duke Power Company that the Town proposed to furnish electric utility 
service within a part of the area added to the town limits effective July 1, 1947. 
The Town also requested that the Company sell to the Town certain facilities 
and equipment used in supplying the customers which the town proposed to 
begin serving. 

in. 

The Duke Power Company owns and holds a franchise from the Town of 
Newton, granted June 11, 1907, and now in full force and effect, which franchise 
appears of record in this proceeding and is in part as follows: 

Section 1. Be it resolved and ordained by the Mayor and the Board of 
Aldermen of the Town of Newton, in the County of Catawba, State of North 
Carolina, that assent and permission be, and the same hereby is given and 
granted unto the said Southern Power Company, its successors, lessees and 
assigns, to lay, plant, extend, construct, build, erect, maintain, repair and 
remove its lines, poles, wires, appliances, conductors, fixtures and other 
appurtenances for the conducting, conveying and the transmission of power 
by electricity upon, along, over and under any and all such highways, roads, 
streets, avenues, side-walks, alleys, lanes, bridges and other public places 
within and near said Town of Newton, as the street committee or board 
of aldermen may direct, and to do all necessary acts for that purpose; and 



Decisions and Adjustments of Complaints 33 

assent and permission is hereby given and granted unto the said Southern 
Power Company to conduct, carry on, transact and do within and near the 
Hmits of said Town of Newton any and all business, and exercise all rights 
and privileges, which the said Southern Power Company, under and by the 
terms of its charter, or otherwise, is authorized, empowered or permitted to 
conduct, carry on, exercise, do or transact, including among other powers, 
privileges and rights, the right, power and privilege to use, lease, sell, convey 
and transmit power by electricity for manufacturing, lighting, heating, 
motive power or other purpose or purposes, not in competition with lighting 
business conducted by said Town, except by the consent of the Board of 
Aldermen. 

IV. 

On August 15, 1947, the Company and the Town of Newton entered into a 
contract providing for the transfer to the Town of Newton of 58 of the 
Company's customers within the area added to the Town Limits, when authorized 
by this Commission, and also providing for the sale by the Company to the Town, 
for the sum of $4,387.31, of certain facilities and equipment used in supplying 
said customers, which facilities and equipment is set out in a joint inventory 
attached to and made a part of said contract, as appears of record. The contract 
further provides that the Power Company will continue to supply certain 
customers within the area in which the Town proposed to take over said 58 
customers, and that the Company's franchise is to remain in full force and effect. 

V. 
The rates at which the Company now supplies the 58 customers to be trans- 
ferred to the Town, and the rates of the Town, are set forth in the Petition and 
appear of record in this proceeding. 

Now, Therefore, upon consideration of the record, the oral and documentary 
evidence in support of the application, and being fully advised in the premises, 
the Commission is of the opinion, finds and holds : 

1. That the applicant has complied with the laws of North Carolina with 
respect to the transfer of the aforesaid 58 customers to the Town of Newton and 
the sale to the Town of the facilities and equipment hereinbefore referred to; 
that due notice thereof and an opportunity to be heard have been given to said 
customers and the public; that the Commission has jurisdiction of the parties 
and of the subject matter. 

2. That the amount which the Town of Newton proposes to pay to the Power 
Company for the facilities and equipment to be sold to the Town is correct and 
proper and should be approved. 

3. That, in view of the provisions of the franchise granted June 11, 1907 by 
the Town of Newton to Sou. Power Company, the transfer of customers and sale 
of equipment and facilities as proposed will be in the public interest and should 
be approved. 

It Is, Therefore, Ordered That the transfer by the Duke Power Company 
to the Town of Newton of 58 customers within the area added to its corporate 
limits effective July 1, 1947, and the sale by the Company to the Town of certain 



v34 N. C. Utilities Commission 

facilities and equipment used to supply said customers, all as set forth in the 
contract between the Company and the Town dated August 15, 1947, be and the 
same hereby is authorized and approved, and the Duke Power Company is 
authorized to perform said contract; 

It Is Further Ordered, upon the transfer of said customers to the Town, 
that the Duke Power Company notify this Commission immediately that the 
transfer has been made. 

It Is Further Ordered That, upon completion of said transfer, the Duke 
Power Company shall be relieved of any and all obligation to render electric 
service to the customers so transferred. 

This 2nd. day of October, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissionfr 

ATTEST: 

Chas. Z. Flack, CJiicf Clerk 

Docket No. 4166 

APPLICATION OF DUKE POWER COMPANY TO ESTABLISH AND 

PUT INTO EFFECT A COAL ADJUSTMENT RIDER AS A PART OF 

ITS ELECTRIC RATE SCHEDULES 

Order 

APPEARANCES: For Applicant: 

W. S. O'B. Robinson, Jr., Charlotte, N. C. 

For Protestants : 

Oscar J. Mooneyham, Attorney, Forest City, N. C, 
for Martel Mills Corporation and Henrietta Mills. 
Willis Smith, Jr., Attorney, Raleigh, N. C, for North 
Carolina Cotton Manufacturers' Association. 

This cause came before the Commission on June 14, 1948, on the application 
of the Duke Power Company (hereinafter referred to as Company or Applicant), 
for authority to establish and put into effect a coal adjustment rider applicable 
to its electric rate schedules, was properly advertised in accordance with law, 
and was heard before the Full Commission on July 7, 1948. 

In this case the Applicant is asking for authority to put into effect the follow- 
ing coal adjustment rider: 

•'This rider is applicable to and becomes a part of all electric rate sched- 
ules of the Company. 

"The net monthly bill shall be increased by .0065c per kilowatt-hour, for 
those kilowatt-hours used by customers during the current billing month 
in excess of 15,000 kilowatt-hours, for each whole 10c above $7.00 per short 
ton in the adjusted average cost of roal burned during the twelve months 



Decisions and Adjustments of Complaints 35 

period ending with the second preceeding month. Whenever the average 
heating value per pound of coal so burned is less than 12,400 or more than 
12,600 b. t. u., the cost shall be adjusted to the equivalent of 12,500 b. t. u. 
per pound. 

"This coal charge is a net charge and shall not be subject to any discount. 

"In order that this coal charge may, so far as practicable, apply to energy 
supplied under Schedules 8-A, 10, 11 and 11-A, to customers engaged in 
resale, in the same way that it applies to energy supplied under the other 
schedules of the Company, only those resales and uses by customers from 
energy supplied under Schedules 8-A, 10, 11 and 11-A, in quantities exceed- 
ing 15,000 Kwh. per month, shall be subject to the coal charge. The 
customer shall report to the Company on or before the 10th of the month 
following the month in which such power is supplied, each resale and 
separate use by the customer from such energy in quantities exceeding 
15,000 Kwh. per month to which the coal charge is applicable. If the 
customer does not so report, the charge shall apply to all power supplied 
the customer in excess of 15,000 Kwh. per month. Customers engaged in 
resale who are supplied under Schedules 8-A, 10, 11 and 11-A will be billed 
for the coal charge in the following month. 

"Effective on meter readings after August 1st, 1948." 
It is stated in the application : 

The actual demands on applicant for electric power and energy are increasing 
at such a rate that it has been necessary for applicant to make, and it must 
continue to make, enormous capital expenditures for additions to its fixed 
electric plant, including additions to its generating plants, its transmission system, 
its distribution system and other service facilities. These expenditures for the 
years 1946 and 1947, and as estimated for the years 1948, 1949 and 1950, are as 
follows : 

1946 $ 7,769,071.44 

1947 20,457,055.93 

1948 26,157,000.00 

1949 26,900,000.00 

1950 24,716,000.00 

Applicant must raise the funds for these expenditures very largely through 
the sale of its securities, and in order to sell its securities upon reasonable terms 
its earnings must be such as to enable applicant to maintain itself in a sound 
financial position. 

The additions to applicant's plants and facilities are being made, and of 
necessity must be made in order to meet the demands on it for increased service 
at a time when the costs of construction are very materially higher than 
construction costs which have heretofore prevailed. At the same time applicant's 
operating cost, including the cost of coal, wages and salaries, and all materials 
and supplies necessary for the operation of applicant's business, are materially 





Cost per 

ton as 
purchased 


Cost per 

ton as 

used 


1946 


$6.34 


$6.22 


1947 


7.49 


7.12 


1948 


8.80 


8.51 


1949 


9.00 


8.98 



26 N. C. Utilities Commission 

increasing. Applicant's coal costs alone for the years 1946 and 1947, and as 
estimated for the years 1948 and 1949, are as follows: 

Total cost 
as used 

$ 8,005,002.52 
13,249,523.02 
18,387,000.00 
21,750,000.00 

From the foregoing it will be noted that applicant's coal cost for the year 
1947 exceeded its coal cost for the year 1946 by $5,244,521.00, and it is estimated 
that its coal cost for the year 1948 will exceed its coal cost for the year 1947 by 
$5,137,000.00, and its coal cost for the j^ear 1949 will exceed its coal cost for the 
year 1947 by at least $8,500,000.00. 

The wages and salaries and other costs of operation and maintenance in the 
conduct of applicant's electric business have likewise materially increased. With- 
out taking into account any payroll increase due to an increase in the number 
of employees, applicant's 1948 payroll for its electric operations alone will exceed 
its 1947 payroll by approximately $800,000.00. 

The rates of applicant now on file with this Commission for the sale of 
electric power and energy are insufficient and non-compensatory under conditions 
now confronting applicant. This is particularly true in the case of rates for the 
sale of power to large consumers of power. In the cases of such consumers the 
coal cost is a very material factor in the total cost of service, whereas in the 
case of residential consumers and other small users of power the cost of coal is 
relatively a smaller factor in the total cost of serving such consumers. Accord- 
ingly it is necessary that some provision be made to meet, in part at least, 
applicant's increasing cost and expense in providing electric service in order 
that applicant may continue adequately and efficiently to serve the public in the 
territory in which it is undertaking to provide electric service. 

Besides corroborating the allegations set out in the application, witnesses for 
the Company also testified to the following: 

1. That in 1938 a pound of coal contained 14,157 b. t. u.'s, whereas present 
coal is running approximately 12,500 b. t. u.'s per pound. 

2. That ten years ago, out of each dollar received from the customers 6.7 
cents were spent for coal. In 1946 this figure had increased to 18.6 cents ; in 
1947 to 26.7 cents; and in 1949 it is estimated the figure will be 35.6 cents. 

3. That the relation of coal costs to total electric operating expenses increased 
from 9.8 cents out of each dollar of total expenses in 1938 to 26.6 cents in 1946; 
to 35.5 cents in 1947; and it is expected to be 44.4 cents in 1949. 

4. That while the estimated growth of revenue from 1947 to 1949 is only 23 
per cent, the estimated increase in cost of coal over the same period is 64 per 
cent. 



Decisions and Adjustments of Complaints 2>1 

5. That the delivered cost per Kilowatt-hour generated by the steam plant 
has risen from 2.6 mills in 1938 to 4.8 mills in 1947; while 5.5 and 5.8 mills are 
estimated for 1948 and 1949 respectively. 

6. That rising coal costs have an even more severe impact on the small 
private plants. 

7. That the cost of coal per Kilo'watt-hour as generated by steam exceeds 
the charge on the last bracket of the rate for large customers. 

8. That the cost of coal to the Company has increased from around $4.00 
per ton prior to 1940 to $7.95 in 1947, and today the estimated average is $8.64 
per ton. 

9. That the coal costs in the average residential bill constitute approximately 
13.5 per cent of the total bill as compared with 15.5 per cent for the average 
commercial bill and 38.6 per cent for the average industrial bill. 

10. That under the application of the requested coal adjustment rider for the 
last five months of 1948 it is estimated about 830 primary power customers and 
400 other customers would have their bills increased on the average of 8.2 per 
cent and Ti.Z per cent respectively, or .7 mill for each Kilowatt-hour affected. 

11. That while during the last five months of 1948 the coal rider would gross 
the Company $933,000.00, it would only net $525,000.00. 

12. That coal clause charges would not increase in an amount sufficient to 
offset increased cost of coal. 

13. That even with a coal clause the rate of return on investment for 1949 
would be 3.18 per cent as compared with 3.36 per cent for 1948. 

14. That the coal adjustment rider herein proposed is one of the most 
favorable in effect today. 

15. That an analysis of one hundred of the largest power companies in the 
country shows that 86 have fuel clauses. 

Counsel for the opposition cross examined witnesses for the Company but 
failed to develop any additional pertinent evidence. Said Counsel was granted 
fifteen days from the date of hearing within which to file briefs. No briefs have 
been filed with the Commission, and the time allowed within which to file same 
has elapsed. 

The Applicant submitted exhibits in support of its contentions. 

From the testimony adduced and from other data and information available 
to the Commission, the Commission finds : 

1. That the application of coal clauses in connection with electric rate 
schedules is a standard practice in the electric power industry. 

2. That the applicant needs additional net revenue if it is to maintain a 
healthy financial condition which would enable it to carry out its proposed 
expansion program at a minimum of cost. 



38 N. C. Utilities Commission 

3. That some of the larger commercial and industrial customers are now 
paying a non-compensatory amount for the current they use. 

4. That the proposed coal adjustment rider appears to be both reasonable 
and proper and should be allowed. 

Wherefore, It Is Ordered, That the Duke Power Company be, and it is 
hereby given authority to establish and put into effect the coal adjustment rider 
as specified in the application and hereinbefore set out. 

It Is Further Ordered, That the coal adjustment rider become etifective on 
all meter readings on and after August 1, 1948. 

It Is Further Ordered, That this cause shall be retained until and after the 
applicant shall have filed with this Commission four quarterly income statements 
beginning with July 1, 1948, which statements shall show revenue and expenses 
in detail ; and within thirty days after the filing of any such quarterly statement, 
the Commission reserves the right to issue an order either increasing or decreas- 
ing the base rate of coal as approved herein. 

This 29th day of July, 1948. 

Stanley Winborne, Chainnan 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST . 

Chas. Z. Flack, Chief Clerk 

Docket No. 4426 

APPLICATION OF DUKE POWER COMPANY FOR 
AUTHORIZATION UNDER CHAPTER 307, PUBLIC LAWS 1933, TO 

ISSUE BONDS 

Order 

LTpon consideration of the application of Duke Power Company for authori- 
zation to issue bonds described in the Application; 

It appears to the Commission that: 

(a) Applicant proposes to issue $40,000,000 principal amount of First and 
Refunding Mortgage Bonds, 3ys% Series Due 1978. 

(b) The proposed $40,000,000 i)rincipal amount of First and Refunditig 
Mortgage Bonds, 3^% Series Due 1978, will be created and issued under and 
pursuant to the provisions of an Indenture dated December 1, 1927, duly executed 
by applicant to Guaranty Trust Company of New York, as Trustee, as supple- 
mented and amended by Supplemental Indenture to be made and executed 
between the same parties and to be dated December 1, 1948. The proposed bonds 
will be dated December 1, 1948; will become due and payable December 1, 1978; 
will bear interest at the rate of 3%% per annum from date, payable semi- 
annually on the 1st day of June and the 1st day of December in each year; will 
contain the terms and be of the form and tenor as set forth and shown in said 



Decisions and Adjustments oe Complaints 39 

Supplemental Indenture to be dated December 1, 1948; will be subject to all the 
provisions of said original Indenture dated December 1, 1927, as amended and 
supplemented by said Supplemental Indenture ; and, by virtue of said original 
Indenture, as so amended and supplemented, will constitute a first lien on 
substantially all of applicant's fixed property and franchises. The proposed 
bonds will be sold privately to the following insurance companies in the respec- 
tive principal amounts set opposite the name of each company, to-wit : 

New York Life Insurance Company $10,000,000.00 

The Mutual Life Insurance Company of New York 10,000,000.00 

The Penn Mutual Life Insurance Company 5,000,000.00 

Aetna Life Insurance Company 5,000,000.00 

The Travelers Insurance Company 5,000,000.00 

New England Mutual Life Insurance Company 2,500,000.00 

Provident Mutual Life Insurance 

Company of Philadelphia . 2,500,000.00 



Total $40,000,000.00 

The bonds in each case will be sold at a premium whicli will result in an 
annual net interest cost to applicant of 3.08%. 

No underwriter's commission or finder's fee will be paid or incurred in 
connection with the issuance and sale of said securities. 

Upon the assumption that the sale of the bonds will be consummated on Decem- 
ber 23, 1948, the net proceeds from the sale of said bonds now proposed to be issued 
by applicant will amount to $40,350,482.65 ( without deduction for expenses and 
exclusive of accrued interest). 

(c) The proposed bonds will be issued, and the proceeds thereof used and 
applied, by applicant for the purpose of financing in part the completion of an 
extensive construction program which applicant has undertaken in order that it 
may adequately provide for the increased demands upon it for service in the 
territory in which it operates, and also for the purpose of reimbursing the 
treasury of applicant for expenditures made on account of said construction 
program, including the payment by applicant of any temporary bank note or notes 
which it may issue for the purpose of providing funds necessary for said 
construction program pending the issuance and sale of said bonds. 

The Commission having considered said Application, which is duly verified, 
and having considered the records of the Commission relating to applicant and 
its operations, finds that : 

1. Applicant is a corporation duly organized and existing under the laws of 
the State of New Jersey. It is duly authorized by its Certificate of Incorporation 
to engage in the business of generating, transmitting, distributing and selling 
electric power and energy, and in the business of operating manufactured gas 
systems, water supply systems and urban transportation systems. It is duly 
domesticated in the State of North Carolina and also in the State of South 
Carolina, and is duly authorized to conduct and carry on business, and is conduct- 
ing and carrying on the business authorized bj^ its Certificate of Incorporation, 



40 N. C. Utilities Commission 

in each of said States. It is a public utility under the laws of this State, and in 
its operations in this State is subject to the jurisdiction of this Commission. 

2. The proposed bonds will be issued by applicant and the proceeds thereof 
used and applied for the purposes specified in the application, which are lawful 
objects within the corporate purposes of appHcant; their issuance is compatible 
with the public interest ; is necessary and appropriate for, and consistent with, 
the proper performance by applicant of its service to the public as a utility, and 
will not impair its ability to perform that service ; and is reasonably necessary 
and appropriate for such purpose and is in the public interest. 

It Is, Therefore, Ordered By The Commission that the proposed issuance 
and sale by Duke Power Company of the securities hereinbefore described, in the 
amount and upon the terms and conditions hereinbefore set forth, and the use and 
application by Duke Power Company of the proceeds of said securities for the 
purposes specified in the application be, and the same hereby are, authorized and 
approved. 

By Order Of The Utilities Commission Of The State Of North 
Carolina, This 26th day of November, 1948, 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4576 

PETITION OF CERTAIN RESIDENTS ON CANEY FORK CREEK, 

JACKSON COUNTY, ASKING FOR NANTAHALA POWER AND 

LIGHT COMPANY ELECTRIC SERVICE. 

Order 
APPEARANCES: 

For Petitioner 

E. P. Stillwell 

For Nantahala Power and Light Company 
Dan K. Moore 

For Opposition 
None 

In this case the Commission has before it the petition of 81 residents of Caney 
Fork Township, on the waters of Caney Fork Creek above the Ransom E. 
Hooper farm in Jackson County, North Carolina, asking that the Nantahala 
Power and Light Company be directed to supply said petitioners with electric 
service. 

This hearing became necessary owing to the opposition of the Haywood 
Electric Membership Corporation. Due to this opposition the Nantahala Power 



Decisions and Adjustments of Complaints 41 

and Light Company took the position that it should not serve said petitioners 
unless directed to so do by this Commission. 

All interested parties were duly notified. 

Petitioners present testified that they desired Nantahala Power and Light 
Company service; that they were entitled to said Nantahala Power and Light 
Company service by reason of its accessibility and its advantages and consent 
court order in the case of Haywood Electric Membership Corporation vs. 
Ransom E. Hooper ; and Fay Hooper, Callie Mae Hooper and Dorcie Hooper 
and their consorts by whatever names they may be called if any. All witnesses 
testified that the community was unanimous in their desire for Nantahala Power 
and Light Company service. 

Witnesses for petitioners were emphatic in their declarations that they did not 
want and would not take service from the Haywood Electric Membership 
Corporation, and that no rights-of-way would be granted to said R. E. A. in 
their community. A copy of the consent judgment reached at the May Term, 
1947, of the Superior Court of Jackson County, was put in evidence. 

This judgment reads in part as follows: 

"2. That the plaintifif shall not erect any power or transmission lines on the 
main prong of Caney Fork Creek above the Ransom Hooper farm, as fully 
described in the petition filed herein, unless requested to do so by the land 
owners involved, and shall at no time institute any condemnation proceedings 
for the purpose of acquiring rights-of-way or other easements or privileges 
across any of the lands on the main prong of Caney Fork Creek above said 
Ransom Hooper's farm ; provided, however, in the event any land owner, or 
owners, desires to obtain service from the plaintiff and agrees to give the 
necessary rights-of-way for erecting the required transmission lines, then the 
said plaintifif shall have the right to build said lines and provide said service, if 
it so desires; but in no instance shall it condemn any rights-of-way on the main 
prong of Caney Fork Creek above the Ransom Hooper farm. 

"3. That any and all persons owning, or in possession of land on the main 
prong of Caney Fork Creek in Jackson County, North Carolina, above the said 
Ransom Hooper's farm, may grant rights-of-way easements for the construction, 
operation, and maintenance of electric lines to whomsoever they may desire, and 
secure electric service therefrom without interference or obstruction, on the part 
of the plaintifif; and that the defendants and their representatives shall not 
interfere or obstruct the building operation, and maintenance of electric lines by 
the plaintifif to and on premises over which the plaintifif has acquired easement 
rights-of-way. 

"4. That all the interested parties defendant in this action are now duly in 
Court and are bound by this Consent Judgment." 

Witness for Nantahala Power and Light Company certified to the accessibility 
of the Company's service to said petitioners and to the ability of the Company to 
furnish said service at once. 

No one appeared in opposition to the petitioners, however, a letter received by 



42 N. C. Utilities Commission 

the Commission from Mr. R. E. Sentelle, Attorney for Haywood Electric 
Alembership Corporation opposing the petition, was read. 

Owing to the fact that Air. Sentelle was prevented by illness from appear- 
ing at the hearing he was, at his request, permitted to file a brief in the case., 

The territory at issue measured by "Consent Judgment" referred to above is 
really what might be referred to as "No Man's Land", however, as it 
was a part of the original area included in the Haywood Membership 
Corporation project in said area and is immediately contiguous to the 
territory now being served by the Haywood Electric Membership Corporation, 
the Commission is of the opinion that before reaching a final decision in the 
case the Haywood Electric Membership Corporation should be given until 
March 10, 1948 in which to procure petitions for service, procure rights-of- 
way and begin construction in said area. 

Pending action and report of the Haywood Electric Membership Corporation, 
the Commission will defer further action in the matter. 

In view of the foregoing, therefore. 

It Is Ordered, That the Haywood Electric Membership Corporation be 
given until March 10, 1948 in which to procure petitioners for service, procure 
rights-of-way and begin construction in the area in question in this matter. 

It Is Further Ordered, That on or before March 10, 1948, the Hay- 
wood Electric Membership Corporation shall make a verified report to this 
Commission, setting forth names of petitioners for service, the rights-of-way pro- 
cured and progress made in line construction. 

It Is Further Ordered, That this cause be retained until after Marcli 
10, 1948 for such further order as the Commission finds necessary. 

This, the 8th day of January, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Charles Z. Flack, Chief Clerk 

Docket No. 4044 

PETITION OF CERTAIN RESIDENTS OF CANEY FORK CREEK, 

JACKSON COUNTY, ASKING FOR NANTAHALA POWER 

AND LIGHT COMPANY ELECTRIC SERVICE 

Supplemental Order 

This case came before the Commission on the petition of 81 residents of Caiiey 
Fork Township, on the waters of Caney Fork Creek above the Ransom E. 
Hooper farm in Jackson County, North Carolina, asking that the Nantahala 
Power and Light Company be directed to supply said petitioner with electric 
service. 

Interested parties were duly notified and the case heard by this Commission 
in its offices at Raleigh on October 3, 1947. 



Decisions and Adjustments of Complaints 43 

A large delegation of petitioners was present, a number of whom gave test- 
imony. 

The petitioners were represented by E. P. Stilwell, Attorney, and the 
Nantahala Power and Light Company by Dan K. Moore Attorney. The Hay- 
wood County Membership Corporation was not represented, owing to the illness of 
R. E. Sentelle, its Attorney. 

Witnesses for the petitioners testified that they desired Nantahala Power and 
Light Company service because it was available and to their interests. 

Witness for the Nantahala Power and Light Company testified that the service 
of his company was available and could be supplied at once. 

In order to buttress their request for Nantahala Power and Light Company 
service petitioners put in as evidence copy of a Consent Judgment issued at the 
1947 May term of the Superior Court of Jackson County which provided that 
residents of the area in question might procure electric service from whomso- 
ever they desired. 

This extract is quoted from the Consent Judgment: 

"That any and all persons owning, or in possession of land on the main prong 
of Caney Fork Creek in Jackson County, North Carolina, above the said Ran- 
som Hooper farm, may grant rights-of-way easements for the construction, 
operation and maintenance of electric lines to whomsoever they may desire and 
secure electric service therefrom without interference or obstruction on the 
part of the plaintiff" (Haywood Electric Membership Corporation.) 

Immediately following the hearing R. E. Sentelle, Attorney for the Haywood 
Electric Membership Corporation, requested permission to file brief for his client. 
This request was granted. He filed a brief in person and supplemented it with 
oral argument. 

In this brief it was contended that the area in question is a vital part of the 
original project of the Haywood Electric Membership Corporation, and that 
if the area in question is deleted it would wreck the said project; that the 
corporation has been ready, able and willing to build its line in said area for the 
past two years but that it had not done so owing to the bitter feud between 
residents in said area. 

It denied that said petition before the Commission represented a true picture 
because there were numerous duplications on said petition which would con- 
siderably reduce the number of petitioners for Nantahala service. 

In view of the representations in the brief and a lively interest on the part of 
this Commission to provide the Haywood Electric Membership Corporation full 
opportunity to win back, if possible, the area in question which it had voluntarily 
relinquished by Consent Judgment at the 1947 May term of the Superior Court 
of Jackson County, the Commission issued the following preliminary order on 
January 8, 1948: 

"It Is Ordered, That the Haywood Electric Membership Corporation be 
given until March 10, 1948, in which to procure petitioners for service, pro- 



44 N. C. Utilities Commission 

cure rights-of-way and begin construction in the area in question in this 
matter. 

"It Is Further Ordered, That on or before March 10, 1948 the Hay- 
wood Electric Membership Corporation shall make a verified report to this 
Commission setting forth names of petitioners for service, the rights-of-way pro- 
cured and progress made in line construction, 

"It Is Further Ordered, That this cause be retained until after March 
10, 1948 for such further order as the Commission finds necessary." 

March 10 has come and gone and the Commission has received no report from 
the Haywood Electric Membership Corporation showing that it has procured 
a single petitioner for service, a single foot of right-of-way or made any con- 
struction. 

This failure on the part of the Haywood Electric Membership Corporation 
corroborates the testimony given by petitioners at said hearing that they 
desire Nantahala Power and Light Company service; that they were entitled to 
said Nantahala Power and Light Company service by reason of its accessibility 
and its advantages, and by consent court judgment in the case of "Haywood 
Electric Membership Corporation vs. Ransom E. Hooper; and Fay Hooper, 
Callie May Hooper and Dorcie Hooper and their consorts by whatever names 
they may be called, if any," and that they did not want and would not take 
service from the Haywood Electric Membership Corporation and that no rights- 
of-way would be granted to the said R. E. A. in their community. 

In view of the testimony adduced at the hearing and the failure of the Hay- 
wood Electric Membership Corporation to secure a single application for serv- 
ice, in the area in question after ample opportunity given by this Commission, 
the Commission finds: 

1. That from the standpoint of electric service, the area in question is un- 
occupied territory. 

2. That the Nantahala Power and Light Company is in position to serve said 
petitioners immediately and to serve them advantageously. 

3. That the said petitioners emphatically desire Nantahala Power and Light 
Company service, 

4. That the said petitioners are lawfully entitled to Nantahala Power and 
Light Company service. 

5. That residents in this area other than petitioners are entitled to Nantahala 
Power and Light Company service. 

6. That utilities under the jurisdiction of this Commission do not have the 
right to enter into agreement as to the division of territory which each shall, 
or shall not, serve without the approval of this Commission. 

In view of the foregoing, therefore 

It Is Ordered, that the Nantahala Power and Light Company be, and 
it hereby is, authorized, empowered and directed to supply electric service to said 



Decisions and Adjustments of Complaints 45 

petitioners and to such other residents in the area at issue upon proper ap- 
plication. 



This, 22nd day of March, 1948. 



Charles Z. Flack, Chief Clerk 
Docket No. 4044 



Stanley Winborne^ Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



PETITION OF CERTAIN RESIDENTS ON CANEY FORK CREEK 

JACKSON COUNTY, ASKING FOR NANTAHALA POWER 

AND LIGHT ELECTRIC SERVICE. 

Order Overruling Exceptions 

This matter again comes before the Commission upon exceptions filed by R. 
E. Sentelle, Attorney for the Haywood Membership Corporation, asking that 
the Commission modify or reverse the supplemental order issued in this cause 
on the 22nd day of March, 1948. 

In passing upon these exceptions the Commission again calls attention to the 
fact that at, the time of the hearing there was no opposition to the granting of 
the franchise to the Nantahala Power and Light Company, but a large number 
of witnesses living in the territory affected were present, who asked that the 
Nantahala Power and Light Company be given a franchise. Following the hear- 
ing the Commission made an exception to the general rule of practice by al- 
lowing Mr. Sentelle to come before it and argue his side of the case. He pro- 
duced no witnesses and no other evidence except his own argument. The 
Commission made an exception in this case due to the fact that Mr. Sentelle 
contended that he was sick at the time of the hearing. 

The exceptions filed are mostly argumentative and restate an argument which 
was made by Mr. Sentelle to this Commission as aforesaid. The supplemental 
order to which these exceptions are filed was entered following the argument of 
Mr. Sentelle as aforesaid and were fully considered by the Commission. 

Wherefore, It Is Ordered that each and all exceptions filed in this cause 
be, and the same are hereby, denied, overruled, and disallowed. 



This, the 5th day of April, 1948. 



Charles Z. Flack, Chief Clerk 
Docket No. 4044 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



46 N. C. Utilities Commission 

PROPERTY TRANSFER TO NATAHALA POWER AND LIGHT 
COMPANY OF RABUN LAND AND WATER COMPANY 

Order 

In this case the Nantahala Power and Light Company comes before the Com- 
mission and asks that it be granted a Certificate of Convenience and Necessity 
to permit it to purchase certain property described below, owned by J. A. and 
J. B. McCrary, trading as the Rabun Land and Water Company: 

"All electric transmission and distribution lines owned by J. A. and J. B. 
McCrary, trading as Rabun Land and Water Company, in the State of North 
Carolina beginning on the first deadend pole located near the North Carolina 
state line; extending thence to the last deadend pole near Addington's Dairy on 
U. S. Highway No. 23, including all lines tapping same extending therefrom 
and connected thereto in the several localities in Smithbridge and Franklin 
townships, Macon County, North Carolina, together with all fixtures, meters, 
transformers and other appurtenances used in connection with the maintenance 
and operation of said line." 

The application sets forth that the agreed purchase price for said property is 
$1,750.00 per mile. 

The property in question is contiguous to the lines of the Nantahala Power 
and Light Company and in the opinion of the Commission the proposed sale 
will be in the interest of all interested parties and will be compatible with the 
public interest, therefore 

It Is Ordered, That a Certificate of Convenience and Necessity be and here- 
by is granted to the Nantahala Power and Light Company to purchase the 
said property referred to above and that the said J. A. and J. B. McCrary, 
trading as the Rabun Land and Water Company is hereby authorized to sell 
said property in question. 

It Is Further Ordered, That this order shall constitute a Certificate of 
Convenience and Necessity in this case. 

This, the 6th. day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Charles Z. Flack, Chief Clerk 

Docket No. 4156 

APPLICATION BY THE NATAHALA POWER AND LIGHT 
COMPANY TO CONSTRUCT CERTAIN PROJECTS. 

Order 

In this case the Nantahala Power and Light Company comes before this Com- 
mission requesting authority to construct the following projects: 

L The Tuckaseigee Project on the West Fork of the Tnrkaseigee River, ap- 



Decisions and Adjustments of Complaints 47 

proximately one mile down from the Glenville Power House, with a water 
wheel generator unit of approximately 4000 h.p. capacity and at an estimated 
cost of $762,000.00. 

2. The Wolf Creek Project on the East Fork of the Tuckaseigee River and 
on Wolf Creek, with a water wheel generator unit of approximately 11000 h.p. 
capacity and at an estimated cost of $1,900,000.00. 

3. The Bryson Plant Diversion on the Tuckaseigee River some 4500 feet 
upstream from the confluence of the Oconalufty and Tuckaseigee Rivers, which 
w^ill increase the annual output of its Bryson City Plant from 6,000,000 to ap- 
proximately 30,000,000 KWHs annually and at an estimated cost of $140,000.00. 

4. The Wesser Project on the Nantahala River about one mile downstream 
from the Nantahala Power House, with a water wheel generator unit of ap- 
proximately 20,000 h. p. capacity and at an estimated cost of $3,850,000.00 

The projects are described in detail in the application. 

It IS set out in the application that the entire energy output from these pro- 
jects will be delivered into the system of the Nantahala Power and Light Com- 
pany for use by its customers; that these projects are within the service area 
of the applicant; and that these projects will not affect the water supply of any 
other company. 

In view of the foregoing facts and other available information the Commission 
finds that the construction of these projects would be in the interest of the 
public. i 

Wherefore, It Is Ordered That the Nantahala Power and Light Com- 
pany be, and it is hereby, authorized to construct the Tuckaseigee Project, 
the Wolf Creek Project, the Bryson Plant Diversion, and the Wesser Project 
as specified and described in application. 

By Order of the Commission 

This the 29th day of September, 1948. 

Stanley Winborne, Chairman 



Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4515 



48 N. C. Utilities Commission 

APPLICATION OF POWER CITY BUS LINES, INC., ALBEMARLE, N. 

C, FOR AUTHORITY TO OPERATE AS FRANCHISE CARRIER 

OF PASSENGERS ON VARIOUS STREETS IN AND 

HIGHWAYS NEAR ALBEMARLE, N. C. 

Order 
BEFORE COMMISSIONER JOHNSON. 
APPEARANCES : For the Applicant : 

R. L. Brown, Jr., Attorney, Albemarle, N. C. 
For the Protestants: None 
JOHNSON, COMMISSIONER: 

This application was called for hearing on the 31st day of August, 1948, at 
the Mecklenburg County Courthouse in Charlotte, North Carolina. 

The Applicant has, for several years, been operating under franchise certificate 
issued by the City of Albemarle, over various streets within the City and operat- 
ing a general intra-city transportation business. 

Copy of an ordinance by the Board of Commissioners of the City of Albe- 
marle granting to Power City Bus Lines, Inc., the right to establish and operate 
bus transportation system was filed and made a part of this application. A reso- 
lution passed by the Board of Aldermen of the City of Albemarle on the 23rd day 
of March, 1948, approving the present application, also was attached to the ap- 
plication. 

The applicant offered several witnesses who testified as to the necessity and 
convenience of the proposed operation. 

Convenience and necessity having been found; 

It Is Therefore, Ordered, That this application be, and the same is here- 
by, granted; that when the applicant has complied with all rules and regu- 
lations of this Commission franchise certificate be issued to Power City Bus 
Lines, Inc., as follows : 

To transport passengers over the following routes : 

East Main Street from its intersection with Second Street to its intersection 
with Pee Dee Avenue; thence on Highway No. IZ (same as No. 27) to Morton 
Ball Park one-fourth mile East of City Limits of Albemarle; thence on un- 
named street connecting Highway No. 73 with Highway No. 740; thence on 
Highway No. 740 to its intersection with Highway No. IZ ; thence on Springs 
Road to Freeman Avenue ; thence on Freeman Avenue to Ridge Street ; thence on 
Ridge Street to Cannon Avenue; thence on Cannon Avenue to Smith Street; 
thence on Smith Street to Montgomery Avenue; thence on Montgomery 
Avenue to North Fifth Street; thence on North Fifth Street to Pee Dee 
Avenue; thence on Pee Dee Avenue to its intersection with East Main Street 
and Fourth Street. 



Decisions and Adjustments of Complaints 49 

West Main Street from its intersection with Second Street to its intersection 
with South Mason Street ; thence on South Mason Street to Meadow Street ; 
thence on Meadow Street to Pahner Street ; thence on Palmer Street to May 
Street ; thence on May Street to Stonewall Street ; thence on Stonewall Street 
to Short Street; thence on Short Street to West Park Avenue; thence on West 
Park Avenue to George Street; thence on George Street to West End Avenue; 
thence on West End Avenue to Church Street ; thence on Church Street to 
Lowder Street ; thence on Lowder Street to Second Avenue ; thence on Second 
Avenue to Efird Street; thence on Efird Street to Monroe Street; thence on 
Monroe Street to Wiscassett Street ; thence on Wiscassett Street to Austin 
Street; thence on Austin Street to Wood Street; thence on Wood Street to 
Monroe Street; hence on Monroe Street to Efird Street; thence on Efird 
Street to North Broom Street; thence on North Broom Street to West Main 
Street. 

Ash Street from its intersection with Salisbury Avenue to Oakwood Avenue ; 
thence on Oakwood Avenue to Austin Street ; thence on Austin Street to Wis- 
cassett Street. 

On North Depot Street from its intersection with West Main Street to Salis- 
bury Avenue ; thence on Salisbury Avenue to Ash Street ; thence on Ash Street 
to Mason Street ; thence on Mason Street to Oak Street ; thence on Oak Street 
to Graham Street ; thence on Graham Street to Ash Street ; thence on Ash Street 
to Edgemont Street ; thence on Edgemont Street to Old Salisbury Road ; thence 
on Old Salisbury Road to point in front of J. P. Lowder's residence; thence on 
Old Salisbury Road to Graham Street ; thence on Graham Street to Cedar 
Street ; thence on Cedar Street to Salisbury Avenue ; thence on Salisbury Ave- 
nue to North First Street ; thence on North First Street to Franklin Street ; 
thence on Franklin Street to North Second Street ; thence on North Second 
Street to Main Street at City Square. 

On North Second Street and Highway No. 52 (North Second Street converges 
into and becomes Highway No. 52) between Franklin Street and point on Highway 
No. 52 in front of Ben Thomas Service Station located 1.5 miles North of City 
Limits ; thence on North Fourth Street from intersection with Highway No. 52 
to East Main Street at Five Points. 

On West North Street between North Second Street and North Depot Street. 

On Salisbury Avenue between North First Street and North Second Street. 

On South First Street from its intersection with West Main Street to its 
intersection with Aquadale Road; thence on Aquadale Road to road leading to 
Rock Creek Municipal Park; thence on Rock Creek Municipal Park Road to 
said Park which is located within corporate limits of Albemarle; thence on 
South Second Street from its intersection with South First Street to Main 
Street at City Square. 

This 13th day of September, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
Attest : 

Charles Z. Flack, Chief Clerk 
Docket No. 4380 



50 N. C. Utilities Commission 

CANCELLATION OK TIDP: WATER POWER COMPANY'S 
GAS SCHEDULE NO. 93 

Order 

In this case the Tide Water Power Company comes before the Commission and 
asks for authority to cancel its gas schedule No. 93 on the grounds that it is 
an old optional schedule inherited from the former owners of the gas properties 
of the Company and is out of line with the regular schedules of the Company. 

The Company states that only five customers are being served on said schedule, 
all of which are located in Kinston ; that the gas being sold to customers on 
this schedule is being sold for less than cost of production and consequently is 
discriminating against other gas users of the company. 

Customers being served on said schedule were properly notified of this hearing 
and the proposal to cancel said schedule. There was no opposition present. 

In view of the Company's presentations it is obvious to the Commission that 
said schedule should be cancelled, therefore 

It Is Ordered, That the Tide Water Power Company is hereby authorized 
and directed to cancel its gas schedule No. 93, effective on and after December 1, 
1947. 

This the 7th day of November, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Charles Z. Flack, Chief Clerk 
Docket No. 399 

APPLICATION OF TIDE WATER POWER COMPANY FOR AN ORDER 

APPROVING AMENDMENT TO CHARTER OR CERTIFICATE 

OF INCORPORATION BY MEANS OF MERGER WITH THE 

TIDEBEL COMPANY AND AUTHORIZING THE ISSUE 

AND SALE OF 10,000 SHARES OF $4.25 CUMULATIVE 

FIRST PREFERRED STOCK, WITHOUT 

NOMINAL OR PAR VALUE. 

Order 

This matter coming on to be heard upon the application of the Tide Water 
Power Company for an Order approving the merger into it of The Tidebel Com- 
pany, the amendment to its charter or certificate of incorporation by means of 
such merger, and authorizing the issue and sale of 10,000 shares of $4.25 Cum- 
ulative First Preferred Stock without nominal or par value; 

IT IS ORDERED: That said application be filed and that this matter be 
and it hereby is docketed and set for immediate hearing before the Commission 
upon said application and upon such evidence, statements and representations 



Decisions and Adjustments of Complaints 51 

as the Tide Water Power Company, through its representatives, may desire 
to submit for the consideration of the Commission: 

And thereupon, this matter came on this day to be heard and was heard upon 
said appHcation and the testimony, statements and representations of the repre- 
sentatives of the Tide Water Power Company; and it appearing to the Com- 
mission That the Tide Water Power Company is a pubHc utihty as defined in 
the PubHc Utihties Act of 1933, being Article 4, of Chapter 62 of the General 
Statutes of North Carolnia, and that the Commission has jurisdiction over the 
Company and of this proceeding; and it further appearing that applicant pro- 
poses, subject to the approval of this Commission, to merge The Tidebel Com- 
pany into the Tide Water Power Company when and if the Stockholders of the 
respective Companies give their approval thereto as required by law, and fol- 
lowing the consummation of said merger to issue and sell 10,000 shares of $4.25 
Cumulative First Preferred Stock, without nominal or par value; and it further 
appearing that the Directors of the respective Companies have entered into 
a written Agreement and Act of Merger dated January 11, 1947, copy of which 
is attached to the application and introduced at this hearing, which Agreement 
and Act of Merger sets forth the designations, preferences, and voting powers 
or restrictions or qualifications thereof of the Preferred Stock proposed to be 
issued and sold; and it further appearing that said proposed new $4.25 Cum- 
ulative First Preferred Stock will be sold at $100 per share plus accrued divi- 
dends from February IS, 1947, and that the proceeds of said sale will be used 
with other corporate funds to retire the outstanding $1,000,000 principal amount 
of 3^% Sinking Fund Debentures Due 1955. 

And after full consideration of said application and of the evidence introduced 
at the hearing, the Commission makes and adopts the following findings : 

That the approval of the proposed merger of The Tidebel Company into Tide 
Water Power Company, in the manner set forth in the proposed Agreement and 
Act of Merger attached to said application and introduced at this hearing, will 
enable the applicant to issue and sell at private sale 10,000 shares of $4.25 
Cumulative First Preferred Stock, without nominal or par value, at the price 
of $100 per share plus accrued dividends, and that the proceeds of said sale will 
be applied to the retirement of $1,000,000 outstanding 3^% Sinking Fund 
Debentures Due 1955, and that a substitution of the said Preferred Stock for the 
said Debentures will reduce the ratio of the Company's debts to its assets and 
improve the capital structure, will release for necessary corporate purposes ap- 
proximately $350,000 which would otherwise be applied to partial redemption of 
said Debentures, will relieve the Company from the fixed obligation to pay an 
nually $100,000 Sinking Fund requirement on the Debentures and substitute 
therefor an annual Sinking Fund of $50,000 on the New Preferred Stock; 
and the Commission finds that the proposed merger and issue of 10,000 shares of 
$4.25 Cumulative First Preferred Stock, without nominal or par value at the 
price of $100 per share plus accrued dividends from February 15, 1947 is for a 
lawful object, within the corporate purposes of the applicant, compatible with the 
public interest, necessary or appropriate for or conistent with the proper per- 
formance by the applicant of its service vo the public aa a utility and will not 
impair its abiliiy to perform that service and is r^o.soriably necessary and ap- 



52 N. C. Utilities Commission 

propriate for such purpose, and the securities of the applicant to be outstanding 
following issuance of proposed new Preferred Stock and the redemption of out- 
standing Debentures will not exceed the amount of securities which applicant is 
authorized by law to issue and this Commissoin is authorized by law to ap- 
prove. 

It Is, Therefore, Ordered that the Tide Water Power Company be and it 
hereby is authorized: 

1. Upon the adoption of the Agreement and Act of Merger dated January 
11, 1947 between The Tidebel Company and the Tide Water Power Company in 
the form submitted at this hearing by the Stockholders of each of the respective 
Companies and upon the filing in the office of the Secretary of State of North 
Carolina of said Agreement and Act of Merger in the form submitted to this 
Commission, all as provided by statute, to merge The Tidebel Company into Tide 
Water Power Company. 

2. To issue and sell 10,000 shares of $4.25 Cumulative First Preferred Stock, 
without nominal or par value, at private sale for the price of $100 per share, 
plus accrued dividends from February 15, 1947. 

3. To apply the proceeds of the sale of said $4.25 Cumulative First Pre- 
ferred Stock, with other corporate funds, to the redemption of its presently out- 
standing $1,000,000 of 3^% Sinking Fund Debentures Due 1955. 

4. The applicant shall, within 60 days after the completion of the transactions 
herein authorized, file with this Commission a full and complete report as to 
the consummation of the transaction. 

Nothing contained in this Order shall be construed to imply any guarantee or 
obligation as to such securities on the part of the State of North Carolina. 

This, the 6th day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3900 

APPLICATION OF TIDE WATER POWER COMPANY FOR CERTIFIED 

COPIES OF ORDERS APPROVING AMENDMENTS TO 

CHARTER OF TIDE WATER POWER COMPANY 

Order 

The Tide Water Power Company, a Public Utility under the laws of the 
State of North Carolina, having requested certified copies of the Orders of 
this Commission authorizing the Secretary of State of North Carolina to issue 
and record Amendments to the Charter of the Tide Water Power Company, 
said Amendments having been issued -and recorded by the Secretary of State of 
North Carolina on- the .4th day of. May,. 1927, on^ the 4th day of March, 1929 



Decisions and Adjustments of Complaints 53 

and on the 20th day of February, 1933 ; and the records of this offic^ on approval 
of Amendments to Charters or Certificates of Incorporation of Public Utilities 
being incomplete and search faihng to disclose the original of said orders. 

It is, therefore. Ordered and Adjudged that the Amendment to the Charter 
of the Tide Water Power Company filed with and accepted by the 
Secretary of State on May 4, 1927, and the Amendment to the Charter of the 
Tide Water Power Company filed with and accepted by the Secretary of State 
on March 4, 1929, and the Amendment to the Charter of the Tide Water Power 
Company filed with and accepted by the Secretary of State on February 20, 
1933, be and each of them hereby is approved by this Commission, and the 
authority to the Secretary of State to issue and. record each of said Certificates 
of Amendment is hereby ratified and confirmed; and the Clerk of the Com- 
mission is hereby instructed to issue certified copies of this Order which are to 
have the same force and effect as if made from the records of this office at the 
time the respective Amendments were issued and recorded by the Secretary of 
State of North Carolina. 

This, the 6th day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G, Johnson, Commissioner 

Attest : 

Charles Z. Flack. Chief Clerk 

Docket No. 3901 

TIDE WATER POWER COMPANY DIVIDENDS 
ON COMMON STOCK 

Order v - 

This matter coming on to be heard upon the application of the Tide Water 
Power Company for an Order of This Commission authorizing payment of 
dividends on its common stock. 

Upon motion, the matter was set down for immediate hearing and was heard, 
and the Commission finds as a fact that the Tide Water Power Company has 
made a proper showing of the necessity for an Order of this Commission 
authorizing the payment of dividends on its common stock. 

It Is, Therefore, Ordered that the Tide Water Power Company be and 
it is hereby authorized to pay dividends upon its common stock not to ex- 
ceed sixty cents (60c) a share in any calendar year, until further orders 
of this Commission. 

Dated this 18th. day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3921 



54 N. C. Utilities Commission 

APPLICATION OF TIDE WATER POWER COMPANY 

Order 

Findings and Order 

TIDE WATER POWER COMPANY, a public utility as defined under the 
Public Utilities Act of 1933, being Article 4 of Chapter 62 of the General Statutes 
of North Carolina of 1943, has filed its application to this Commission under the 
provisions of said Act for an Order authorizing- and approving the proposed is- 
suance and sale of an additional $600,000 principal amount of First Mortgage 
Bonds, 3-1/8% Series due 1975. 

The additional bonds are to be of the same series as the $4,500,000 of bonds 
novj outstanding; they are to bear interest at the rate of 3-1/8% per annum 
and are to be sold to John Hancock Mutual Life Insurance Company at a price 
t)f 102.3085% of their principal amount, plus accrued interest. 

Hearing has been duly held upon said Application and after full consideration 
of said Application and of the evidence introduced at said hearing, the Com- 
mission makes and adopts the following findings : 

The applicant proposed to issue $600,000 principal amount of its First Mortgage 
Bonds, 3^% Series due 1975, secured by its Indenture dated as of January 1, 
1945, to Chemical Bank & Trust Company, as Trustee, which is a lien upon the 
properties of the Company, as to be supplemented by the First Supplemental 
Indenture, and to sell the same to John Hancock Mutual Life Insurance Com- 
pany at a price of 102.3085% of principal amount, plus accrued interest, and 
the proceeds are to be used to provide funds for additions to applicant's utility 
plant, other physical properties etc., or to reimburse applicant's treasury for 
funds expended for such purposes. 

Upon these facts this Commission finds that the proposed issuance and sale 
of said bonds appear to be (a) for a lawful object within the corporate pur- 
poses of the applicant; (b) compatible with the public interest; (c) necessary 
or appropriate for or consistent with proper performance by applicant of its 
service to the public as a utility, and will not impair its ability to perform that 
service and (d) are reasonable, necessary and appropriate for such purposes. 

The proposed issuance and sale of said new bonds are in the public interest 
and comply in all respects with the provisions of Section 62-82 of Article 4 

of Chapter 62 of the General Statutes of North Carolina of 1943 and other ap- 
plicable statutes of North Carolina. The securities of applicant to be outstanding 
following the issuance of the proposed new bonds will not exceed the amount of 
securities which applicant will be authorized to issue and which the Commis- 
sion is authorized to approve. 

It Is Therefore, Ordered: 

That Tide Water Power Company be and it hereby is authorized: 
(a) To issue $600,000 principal amount of its First Mortgage Bonds 3-1/8% 
Series due 1975 and to sell the same at a price not lessl than 102.3085% of their 
principal amount, plus accrued interest, and to apply the proceeds of the sale to 



Decisions and Adjustments of Complaints 55 

payment for additions to its plant, other physical properties etc., or to reim- 
burse the appHcant's treasury for funds heretofore expended for such purposes. 

(b) As further security for the payment of the principal of and interest on 
all of its First Mortgage Bonds, including those now proposed to be issued, to 
execute and deliver to Chemical Bank and Trust Company, as Trustee, a First 
Supplemental Indenture in the form, or substantially in the form, filed with this 
Commission, confirming the lien of the existing Indenture upon the properties of 
the Company in the State of North Carolina. 

(c) Nothing contained in this Order shall be taken or construed as a find- 
ing on the part of the Commission of the value of the Company's property for 
rate making purposes. 

(d) The applicant shall, from time to time, within sixty days after tlie com.- 
pletion of the transactions herein authorized, file with this Commission a full and 
complete report as to consummation of the transactions. 

This order shall be in full force and effect from and after the date hereof. 

Dated this 27tli day of October, 1947. 

Stanley Winborne, Cliairman 
Fred C. Hunter, Commissinner 
R. G. Johnson, Commissioner 

Attest: 

Charles Z. Flack, Chief Clerk 

Docket No. 4224 

TIDE WATER POWER COMPANY APPLICATION FOR AN ORDER 

AUTHORIZING THE ISSUANCE AND SALE OF 80,000 

SHARES OF COMMON STOCK WITHOUT 

NOMINAL OR PAR VALUE 

Order 

rThis matter coming on to be heard upon the application of the Tide Water 
Power Company for an Order authorizing the issuance and sale of 80,000 shares 
of common stock without nominal or par value ; 

It Is Ordered: That said application be filed and that this matter be 
and it hereby is docketed and set for immediate hearing before the Commission 
upon said application and upon such evidence, statements and representations as 
the Tide Water Power Company, through its representatives, may desire to 
submit for the consideration of the Commission ; 

And thereupon, this matter came on this day to be heard and was heard upon 
said application and the testimony, statements and representations of the repre- 
sentatives of the Tide Water Power Company ; and it appearing to the Com- 
mission that the Tide Water Power Company is a public utility as defined in the 
Public Utilities Act of 1933, being Article 4, of Chapter 62, of the General Sta- 
tutes of North Carolina, and that the Commission has jurisdiction over the Com- 
pany and of this proceeding ; and it further appearing that applicant proposes, 



56 N. C. Utilities Commission 

subject to the approval of this Commission and the effectiveness of a Registra- 
tion Statement filed with the Securities and Exchange Commission, to issue and 
sell 80,000 shares of common stock without nominal or par value ; and it 
further appearing that the officers of the Company propose to enter into an 
agreement for the sale of said 80,000 shares of common stock without nominal 
or par value in substantially the form attached to the application and introduced 
at this hearing ; and it further appearing that the said proposed new 80,000 
shares of common stock without nominal or par value will be sold at not less 
than $5 per share and not more than $8 per share and that the net proceeds of 
said sale will be used to finance extensions of service, primarily electric service, 
to new customers, and additional or enlarged sub-stations, transformers and other 
distribution facilities required to handle the increased load incident to new 
consumers heretofore and hereafter added to the lines and that a part of the 
proceeds may also be used to pay $200,000 of bank loan and to reimburse the 
treasury for expenditures already made for such construction. 

And after full consideration of said application and of the evidence introduced 
at the hearing, the Commission makes and adopts the following findings : 

That the Tide Water Power Company is in need of additional funds to in- 
crease public utility facilities, extensions of service, primarily electric service, to 
new customers, and additional or enlarged sub-stations, transformers and other 
distribution facilities in order to be in position to render service to the public, 
and that this necessity for additional funds arises out of prospective new con- 
sumers and the increased load incident to new consumers heretofore and here- 
after added to the line ; that the proposed issue and sale of 80,000 shares of com- 
mon stock without nominal or par value at the price of not less than $5 nor* more 
than $8 per share is for a lawful object within the corporate purposes of the 
applicant, compatible with the public interest, necessary and appropriate for 
or consistent with the proper performance by the applicant of its service to 
the public as a utility and will not impair its ability to perform that service 
and is reasonably necessary and appropriate for such purpose, and the securities 
of the applicant Tide Water Power Company, to be outstanding following issuance 
of the proposed new 80,000 shares of common stock without nominal or par 
value will not exceed the amount of securities which said applicant is authorized 
by law to issue. 

It Is, Therefore. Ordered that the Tide Water Power Company be and it 
hereby is authorized : 

1. Upon effectiveness of a Registration Statement covering said 80,000 shares of 
common stock without nominal or par value filed with the Securities and Ex- 
change Commission and subject to specific authorization by its Board of Directors, 
to issue and sell 80,000 shares of common stock without nominal or par value at 
not less than $5 and not more than $8 per share. 

2. To apply the proceeds of sale of said 80,000 shares of common stock without 
nominal or par value to finance extensions of service, primarily electric ser- 
vice, to new customers, and additional or enlarged sub-stations, transformers and 
other distribution facilities required to handle the increased load incident to new 
consumers heretofore and hereafter added to the lines and to use sufficient of 



Decisions and Adjustments of Complaints 57 

the proceeds to pay off and discharge the $200,000 bank loan and to use part 
of the proceeds to reimburse the treasury for expenditures already made for 
such purposes. 

It is further ordered that the order of this Commission, dated February 18, 
1947, permitting the payment of dividends on the Common Stock of the Company 
at a rate not to exceed 60c per share in any calendar year shall, until further 
order of this Commission extend also to the additional 80,000 shares of Common 
Stock herein referred to. 

It Is Further Ordered that the applicant shall within sixty (60) days 
after completion of the transactions herein authorized file with this Com- 
mission a full and complete report as to the consummation of the transaction. 

Nothing contained in this Order shall be construed to imply any guarantee or 
obligation as to such securities on the part of the State of North Carolina. 

This, the 26th day of October, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z, Flack, Chief Clerk 

Docket No. 4547 

FINAL REPORT IN TIDE WATER POWER COMPANY SALE OF 

COMMON STOCK 

Order 

In this case the Tide Water Power Company comes before the Commission 
and presents report as required by order of this Commission, Docket No. 4547, 
dated October 26, 1948. 

This report the company presents as its final report on the issuance and sale 
of 80,000 shares of common stock for the purpose of further expanding the plant 
facilities of the company and discharging a $200,000 bank loan. 

The report is in compliance with the aforementioned order and shows that the 
conditions of said order have been carried out. 

Wherefore It Is Ordered that the said report referred to above be and is 
accepted by this Commission and that the file in this case be closed. 

By Order of the Commission 

This the 31st day of December, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: ^ 

Charles Z. Flack, Chief Clerk 

Docket No. 4547 



58 N. C. Utilities Commission 

VIRGINIA ELFXTRIC AND POWER COMPANY, EX PARTE 

Order 

The Application, dated December 30, 1946, of Virginia Electric and Power 
Company for authorization under the Public Utilities Securities Act of 1933, 
if and to the extent applicable, with respect to an amendment to its Articles of 
Association, as heretofore amended, so as to provide for cumulative voting on 
the part of the holders of its Common Stock and to provide for certain preemp- 
tive rights on the part of the holders of its Common Stock having been 
received and filed, and the Commission being fully advised in the premises, it 
is here now 

Ordered That all such authorization as may be requisite under the Public 
Utilities Securities Act of 1933 for the transactions proposed in said Application 
be, and hereby is, granted. 

This, the 31st day of December, 1946. 

Stanley Winborne, Chairman 
■ Fred C. Hunter, Commissionef 
R. G- Johnson, ('mnmissionpr' 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 3868 

VIRGINIA ELECTRIC AND POWER COMPANY EX PARTE 

Order Authorizing Issuance Of Securities 
On consideration of the Application of Virginia Electric and Power Company 
for Authority to Issue Securities, dated October 1, 1947, and the exhibits made 
a part thereof, it is 

Ordered that all authorization and approval requisite under the laws of North 
Carolina are hereby given for the issuance and sale of a Secured Note in the 
principal amount of $5,000,000 as proposed in the Application and the issuance 
and pledge thereunder of an ec[ual principal amount of the Company's First and 
Refunding Mortgage Bonds, Series E 2-34%, due March 1. 1975, and all 
transactions reasonably incidental thereto. 

Dated this 7th. day of October, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunted, Commissioner 
R. G. Johnson, Commissioner 

BY ORDER OF THE COMMISSION 
Chas. Z. Flack. Chief Clerk 
Docket No. 4201 

BOND. DEBENTURE AND STOCK ISSUE OF VIRGINIA ELECTRIC 
AND POWER COMPANY 

Order 
In this case the Virginia Electric and Power Company comes before the 
Commission and asks for authority ". 



Decisions and Adjustments of Complaints 59 

1. To issue and sell, for cash, by competitive bidding $10,000,000 principal 
amount of its First and Refunding Mortgage Bonds, Series F, due March 1, 
1978, the selling price thereof to be not less than the principal amount of the 
bonds, and to bear interest at a rate to be fixed by the bidding but not to 
exceed such rate as will result in a cost of money to maturity of 3>^% per 
annum, before taking into account expenses incident to the issuance and sale 
thereof. 

1. To issue v$l 1,753,800, principal amount of convertible debentures, due April 
1. 1963, to bear interest at a rate to be negotiated immediately prior to the 
offering but not to exceed 3-'>4% per annum, to be convertible into common 
stock of the applicant at a price to be negotiated immediately prior to the offer- 
ing, but not to be less than approximately the current market price at that time 
and not more than 20% above such price ; to be initially offered to the holders 
of the applicant's common stock through transferable warrants permitting 
subscription, within 20 days after mailing, at the principal amount thereof, to 
$100 principal amount of debentures for each 25 shares of common stock held, 
any unsubscribed debentures to be underwritten by several underwriters, at the 
principal amount thereof plus accrued interest, pursuant to an underwriting 
agreement to be negotiated immediately prior to the offering ; 

3. To issue from time to time shares of its common stock upon conversion 
of the aforesaid debentures in accordance with their terms; 

4. To issue and distribute to its common stockholders transferable warrants 
for subscription to the debenture issue in accordance with the terms proposed 
in application. 

5. To issue shares of its $10.00 par value common stock in conversion and 
excharge for an equal number of shares of its outstandifig common stock of no 
par value. 

The proceeds to be derived from sale of bonds and debentures, are to be used, 
it is said, in the payment of expenses incident to issue of said securities, indebted- 
ness outstanding at the time proceeds from bonds and debenture sales are 
received, evidenced by secured and unsecured notes, incurred in temporarily 
financing the applicant's utility plant construction program ; and to partially 
finance the applicant's current utility plant construction program. 

Accompanying the said application is a copy of an order of State Corporation 
of V^irginia granting in full all of the above requests of the Company set forth 
in a similar application before that Commission. 

This Commission is in thorough accord with the findings and decision of the 
N'irginia Commission except the provisions in Item 5. Here there is a difference 
of policy. As 90% of the applicant's business is in the State of Virginia, this 
Commission has decided to go along with the decision of the Virginia Commis- 
ion on the point of disagreement ; however, this Commission does so with 
reluctance and wishes it distinctly understood that its action in the instant case 
must not be construed as a precedent to be followed in future cases. 

From the financial statements filed with the application and the records in 
this office, it is evident to this Commission that the applicant is in fine financial 



60 N. C. Utilities Commission 

condition and that the issue of the proposed bonds and debenture and common 
stock increase will be for a lawful object within the corporate purposes of the 
utility; compatible with the public interest, is necessary or appropriate for or 
consistent with the proper performance of the utility of its service to the public 
as such utility and will not impair its ability to perform such service, and is 
reasonably necessary and appropriate for such purposes ; therefore 

It Is Ordered, that the Virginia Electric and Power Company be, and it hereby 
is, granted authority to issue bonds, debentures, and common stock and to 
carry out the other transactions requested, set forth above and in application, 
upon the terms and conditions set forth above and in said application. 

This 15th day of March, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4344 

APPLICATION BY VIRGINIA ELECTRIC AND POWER COMPANY 
FOR AUTHORITY TO ISSUE SECURITIES 

Order 

The application of Virginia Electric and Power Company having been filed 
for authority to issue additional shares of common stock in an amount to realize 
approximately $11,000,000.00 and notes to banks in a principal amount of up to 
$5,000,000.00 in aid of its improvement program, together with due evidence of 
authorization by the State Corporation Commission of Virginia, all authorization 
requisite under the laws of North Carolina is hereby granted. 

By Order of the Commission 

This the 15th day of October, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R, G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4544 

APPLICATION BY VIRGINIA ELECTRIC AND POWER COMPANY 
FOR AUTHORITY TO ISSUE SECURITIES 

Order 

The Supplemental Application of Virginia Electric and Power Company 
having been filed, together with the forms of the proposed securities to be 
issued pursuant to the authorization granted by this Commission on October 15, 



Decisions and Adjustments of Complaints 



61 



1948, and the terms and conditions of the offering thereof and due evidence of 
authorization by the State Corporation Commission of Virginia, all authorization 
requisite under the laws of North Carolina is hereby granted. 

By Order of the Commission. 

This the 9th day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4544 

APPLICATION BY VIRGINIA ELECTRIC AND POWER COMPANY 
FOR AUTHORITY TO ISSUE SECURITIES 

Order 

The Second Supplemental Application of Virginia Electric and Power 
Company (for authority to modify a provision in the terms of offering of the 
proposed securities and a provision relating to compensation of underwriters) hav- 
ing been filed, together with due evidence of authorization by the State Corporation 
Commission of Virginia, all authorization requisite under the laws of North 
Carolina is hereby granted. 

By Order of the Commission. 

This the 12th day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest: "^ 

Chas. Z. Flack, Chief Clerk 

Docket No. 4544 

EXPRESS COMPANY 

APPLICATION OF RAILWAY EXPRESS AGENCY FOR APPROVAL 

OF ITS ACTION IN DISCONTINUING CARETAKER AGENCY 

SERVICE AT ARDEN, N. C. 



Order 

By application filed September 19, 1947, the Railway Express Agency seeks 
the Commission's approval of its discontinuance of caretaker agency service at 
Arden, N. C. 

Arden is a local, non-agency station on the Southern Railway's Asheville & 
Spartanburg line intermediate to Asheville and Fletcher. The Southern Railway 
discontinued agency service at Arden several years ago. During this period 
when no railroad agency service has been afforded, the Railway Express Agency 
has maintained caretaker-agency service, paying the caretaker-agent a small 



62 N. C. Utilities Commission 

salary in addition to conitnissions, which combined averaged $22.3t» per month 
during the twelve months ending with July 1946, and $21.90 per month during 
the twelve months ending with July, 1947. 

The agent-caretaker being no longer able to continue the duties because of 
ill health, tendered her resignation effective September 1, 1947. Since that time 
the Railway Express Agency has been unable to interest anyone else in the 
taking over the duties and consequently has had to discontinue the service. 

Express Agency service is available at Fletcher and Asheville, which are 3 and 
8.8 miles distant from Arden, respectively. 

In view of the nearness of available service at adjacent points and of the 
other circumstances above recited the Commission has concluded that the public 
convenience and necessity do not require restoration of the caretaker-agency 
service at Arden. Accordingly, 

It Is Ordkred, That the Railway Express Agency action in discontiiming 
caretaker-agency service at Arden, N. C, be, and same is hereby, approved. 

By Order of the Commission. 

This 1st day of December, 1947. 



Chas. Z. Flack, Chief Clerk 



Docket No. 4180 



APPLICATION OF THE RAILWAY EXPRESS AGENCY, 

INCORPORATED, FOR AUTHORITY TO DISCONTINUE 

CARETAKER SERVICE AT CLARENDON, NORTH CAROLINA. 

Order 

By application tiled December 18, 1946, the Railway Express Agency, Incor- 
porated, seeks authority to discontinue caretaker service at Clarendon, N. C. 

Since September 2, 1943, at which time the Atlantic Coast Line Railroad 
Company was authorized, in Docket No. 185, to reduce its agency service at 
Clarendon from a twelve months to a three months basis, applicant herein has 
maintained caretaker service in lieu of agency service. Execept during the approx- 
imately three months of sweet potato sliipping season, the caretaker's commissions 
from forwarded express have been less than the minimum guarantee of $5.00 per 
month. The caretaker tendered her resignation, effective on January 1, 1947, and 
applicant being unable to find anyone interested in the position was forced to 
suspend the service on that date. 

Express traffic to and from Clarendon and its vicinity is moving through 
either Tabor City, Chadbourn or Whiteville. The preponderance is probably being 
handled through Tabor City, which is only 4.8 miles distant, and which appears to 
have adequate agency facilities. 

The Commission, has not received any protests to the proposed discontinuance, 
and there appears to be no adverse sentiment on the part of residents of Clarendon. 



Dect.stons and Adjustments of Complaints 63 

The Commission, upon consideration of the circumstances, ratifies the suspen- 
sion of the caretaker service at Clarendon on January 1, 1947, and concludes 
from the facts presented that said service may be discontinued without undue 
adverse effect upon the public convenience and necessity. Therefore, 

It Is Ordered That the application herein be, and same is hereby, ap- 
proved. 

By order of the Commission. 

This 15th day of February, 1947. 

Charles Z. Flack, Chief Clerk 
Docket No. 192 

GAS COMPANIES 

APPLICATION OF THE CAROLINA CENTRAL GAS COMPANY TO 
RESTRICT SPACE HEATING AND HOUSE HEATING 

Order 

This cause comes before the Commission on the application of the Carolina 
Central Gas Company for authority to restrict tli» use of gas for space heating 
and house heating purposes as follows : 

A. To those applicants for gas service to whom the company has, prior to 
the date of this order, obligated itself to furnish service. 

B. To any customer whose requirements for gas for such purposes will not, 
in the opinion of the Company, be more than twice as great in any winter 
month as in the smallest summer month. 'Winter month' for the purpose of 
this definition shall mean the months of November to March inclusive, 
and 'summer month' shall mean all other months. 

C. To any customer who will use such gas in year round air conditioning 
appliances. 

D. To any customer for use in space heating equipment installed in that 
customer's premises on or before the date of this order, and where the 
said customer was taking space heating service from the Company on 
said date ; provided that any said customer already receiving space heating 
service at any given location may elect to receive such service at a new 
location owned or occupied by that customer, and if such service was not 
theretofore rendered at the new location, such service shall then be dis- 
continued at the previous location and rendered only at the new location. 

E. To any customer whose requirements for gas for such purposes can be 
met from additional supplies for fuel available to the Company after sup- 
plying the requirements of customers in A, B, C, and D above, the re- 
quirements for such customers to be met only to the extent fuel is available 
and in the order in which said customers make application for such service. 

The applicant contends that it cannot meet additional demands which are being 
made on it for gas space heating appliances which use large quantities of gas 



64 N. C. Utilities Commission 

in the winter months and none in the summer months without jeopardizing 
its primary and basic service of supplying gas to domestic customers for cooking, 
water heating, and refrigeration. 

In support of its contention the appHcant shows that in the sixteen cities 
served by this affiHated group of properties the ratio of use between winter 
and summer needs is already wider than the ratio provided in the Company's 
contract with the Skelly Oil Company; that the company has been advised by 
the Skelly Oil Company that it cannot continue to supply butane on a ratio as 
great as the present ratio of approximately 2 to 1 ; that other butane producers 
contacted would not offer to supply butane at a ratio greater than 1.5 to 1. 

From the foregoing facts and from other available information this Com- 
mission finds that limitation on the furnishing of gas service for space heating and 
house heating purposes is necessary to assure continuity of gas service for the 
basic cooking, water heating, and refrigeration load of the company and to as- 
sure continuity of service to present customers ; and that the requested restrictions 
are fair and reasonable and should be approved. 

Wherefore It Is Ordered That the Carolina Central Gas Company is hereby 
authorized and directed to restrict the use of gas for space heating and house 
heating purposes as set out under caption A, B, C, D, and E at the commence- 
ment of this order. 

It Is Further Ordered That if any provision of this order is violated, the 
company shall have the right to discontinue all service to the premises until 
the space heating or house heating equipment is removed. 

It Is Further Ordered That this order shall become effective as of this 
date and shall remain in effect until as such time conditions warrant either its 
revision or its revocation. 

By Order of the Commission 

This 24th day of September, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4511 

CAROLINA CENTRAL GAS COMPANY: CHANGE IN HEATING 

VALUE OF GAS FURNISHED. CHANGE IN BILLING TO THERM 

BASIS AND SUBSTITUTION OF ONE SCHEDULE IN 

LIEU OF EXISTING SCHEDULES. 

Order 

In this case the Carolina Central Gas Company comes before the Commission 
and asks that it be granted authority to — 

1. Alter and change the method of computation of its rates and tariffs; 



Rate 




Gross 


First 


2 therms or less per month 


$1.10 


Next 


8 therms per month 


.31 


Next 


10 therms per month 


.21 


Next 


55 therms per month 


J7 


All Over 


75 therms per month 


.15 


Minimum Bill : 







Decisions and Adjustments of Complaints 65 

2. Change the heating value of gas supplied to its customers to a standard 
of 1300 B. T. U. per cubic foot instead of present 540 B. T. U.; 

3. Change to a therm basis of billing instead of cubic foot basis. 

4. Put into effect the following rate schedule in lieu of existing schedules : 

Rates for Gas Service 

This rate shall be available to any person or customer for any purpose and 
shall be the only rate for gas service available. 

Net 
$1.00 
.30 
.20 
.16 
.14 



Except as provided below, the minimum bill shall be $1.10 gross per month and 
$1.00 net per month. 

Prompt Payment Discount : 

A discount of 10c on the first two therms or less and a discount of Ic per 
therm on all gas used in excess of two therms per month will be allowed for 
payment of bill on or before ten days from date of bill. 

Special Terms and Conditions : 

1. Customers using gas for space heating shall be entitled to a discount of 12c 
per therm on the first 20 therms used per month. The maximum discount shall 
be $2.40. The space heating appliance must be connected and in active use, but 
may be any heating appliance. This discount shall apply only during the months 
of October to April inclusive. During the months of November to March, in- 
clusive, the minimum bill for customers taking advantage of this discount shall 
be $5.00 net per month. 

2. Customers using an automatic gas storage water heater or a gas refrigerator, 
or any other automatic gas appliance other than a space heating appliance shall 
be entitled to a discount of 7c per therm, , but total discount shall not exceed 
$1.00. This discount shall apply during every month of the year. In order 
to be entitled to this discount customer must guarantee a minimum bill of $3.00 
net per month. 

3. Customers using both a heating appliance as defined in (1) above and 
an automatic appliance other than an automatic heating appliance as defined in 
(2) above shall not be entitled to more than a maximum of $2.40 discount. The 
minimum bill for customers in this class will be $3.00 net for each month of the 
year. 

4. If the delivered cost of butane or propane from which gas is made by the 
Carolina Central Gas Company shall be increased one cent or more per gallon, 



66 N. C. Utilities Commission 

the company may increase the rate in the above third, fourth, and fifth bracket, 
one cent per therm for each full cent of such increase. 

The word therm as used herein means 100,000 British Thermal Units, 

The company witness pointed out that the rates in the above schedule would 
give about a 5% reduction to domestic and commercial users and raise slightly 
the space heating rate. An increase in the cost of fuel used in the manufacture 
of gas furnished, it was pointed out, necessitated an increase in the space heating 
rate which at present is subnormal. The witness said that there was no profit 
in space heating service under present or proposed rate. 

The rate schedule and the other changes proposed, in the opinion of the Com- 
mission, are just and reasonable and compatible with the public interest, there- 
fore 

It Is Ordered That the Central Gas Company is hereby authorized to put 
into effect the schedule requested, set forth above, on meter readings on and 
after June 1, 1947. 

This, the 14th day of June, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3946 

APPLICATION OF DUKE POWER COMPANY FOR AN 
INCREASE IN GAS RATES 

Order 

APPEARANCES: For Applicant: 

W. S. O'B. Robinson, Jr. 

For Protestants: 

None 

This cause was filed with the Commission on June 14, 1948, and came on to 
be heard on July 7, 1948, before the full Commission. The matter was properly 
advertised according to law. 

In this case the Duke Power Company has petitioned the Commission for 
authority to make certain increases in its gas rate schedules, except schedules 
covering Prepayment Gas Service. Filed with the application and made a part 
thereof are copies of proposed rate schedules which the applicant desires to 
establish and put into effect. 

It is set forth in the application that the Company's present rates are not 
only inadequate and non-compensatory, but are insufficient to pay actual operat- 
ing expenses; that in 1947 operating expenses exceeded operating revenues by 
approximately $200,000; that this operating loss is continuing, and for the first 



Decisions and Adjustments of Complaints 67 

quarter of 1948 the loss is accruing at a higher rate than for 1947, and that 
this loss is due principally to the very substantial increase in the cost of coal, 
fuel oil, propane gas and other materials and supplies used by the Company 
in the manufacture and distribution of gas, and to the increase in labor cost. 
Besides substantiating the above, witness for the applicant also testified that 
based on operations for 1947 the proposed rates would have shown net earnings 
of approximately $34,000 on a plant investment of $6,600,000; that production 
costs alone amount to $.66 per thousand cubic feet, as compared to sales price 
under present schedules of $.60 per thousand cubic feet for all over 20,000; 
that while the monthly bills of some of the larger commercial and space heat- 
ing customers will show a maximum increase of thirty-three per cent under 
proposed rates, approximately sixty per cent of residential customers and thirty- 
three per cent of commercial customers who now use gas at the rate of $4.00 
or less per month, will not be affected. 

In support of its request, the applicant submitted Exhibits G-1, G-2, G-3, 
and G-4 for the record and same were received and accepted as such by the 
Commission. 

From the testimony adduced and from other data and information available to 
the Commission, the Commission finds that there exists on the part of the 
applicant an urgent need for additional net revenues ; that applicant cannot con- 
tinue indefinitely to operate at a loss without either impairing the integrity of 
its capital structure or imposing an undue burden on its electric customers ; that 
the proposed rates are comparable to those now in effect by other gas com- 
panies ; and that said proposed rates are fair and reasonable. 

Therefore, It Is Ordered, That the proposed rate schedules specified in the 
application be, and the same are hereby, approved. 

It Is Further Ordered, That the rates herein approved shall become effective 
on all meter readings on and after August 1, 1948. 



This 26th day of July, 1948. 



Stanley Win borne. Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 1620 

DUKE POWER COMPANY'S GAS SERVICE FOR INDUSTRIAL, 

COMMERCIAL AND RESIDENTIAL SPACE HEATING 

AND HOUSE HEATING 

Order 

In this case the Duke Power Company, hereinafter referred to as Company, 
is asking for authority to amend its gas schedules on file with this Commission 
by incorporating in said schedules, and making a part thereof, the following 
gas service regulation: 



68 N. C. Utilities Commission 

Limitation on the furnishing of gas service for space heating and house 
heating purposes is necessary to assure continuity of gas service for the basic 
cooking and water heating load of the Company. Accordingly, the Company 
cannot, until further notice, supply gas for any new space heating or house 
heating purposes after the effective date hereof, whether this be through new 
equipment or the replacement or conversion of equipment burning other fuels, 
The only exceptions to this rule will be applications for such service where 
only satisfactory evidence is presented to the Company that the equipment had 
been installed or was being installed on the effective date thereof. 

If this rule is violated, the Company shall have the right to discontinue 
all service to the premises until the space heating or house heating equipment 
is removed. 

It is stated in the application that the gas plants are maintained and operated 
by the Company primarily for the purposes of supplying gas to domestic consumers 
for cooking and water heating and that this use constitutes the basic load 
of said gas plants ; that the use of gas for industrial, commercial, and residential 
space heating and house heating has steadily increased for the past several years 
due to the increasing cost of coal, oil and other means of heating; that the 
Company is unable to continue to supply gas for such space heating and house 
heating without rendering unsatisfactory and insufficient its primary service of 
supplying gas to domestic customers for cooking and water heating. 

From the foregoing, it is apparent to the Commission that there exists the 
need for the requested gas service regulation and that said regulation is rea- 
sonable and proper and should be allowed, therefore 

It Is Ordered That the Duke Power Company be, and it is hereby, 
granted authority to amend its gas schedules on file with this Commission by in- 
corporating in said schedules, and making a part thereof, the following gas 
service regulation effective as of the 15th day of May, 1948: 

Limitation on the furnishing of gas service for space heating and house heat- 
ing purposes is necessary to assure continuity of gas service for the basic cook- 
ing and water heating load of the Company. Accordingly, the Company can- 
not, until further notice, supply gas for any new space heating or house heat- 
ing purposes after the effective date hereof, whether this be through new 
equipment or the replacement or conversion of equipment burning other fuels. 
The only exceptions to this rule will be applications for such service where 
satisfactory evidence is presented to the Company that the equipment had been 
installed or was being installed on the effective date hereof. 

If this rule is violated, the Company shall have the right to discontinue all 
service to the premises until the space heating or house heating equipment is 
removed. 



This 6th day of May, 1948. 



Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4393 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 69 

FIXING PLANT ACCOUNT AND DEPRECIATION RESERVE 
OF THE GOLDSBORO GAS COMPANY 

Order 

In this case the Goldsboro Gas Company having acquired the gas property 
of the Tide Water Power Company at Goldsboro, North CaroHna, by the 
authority of this Commission in order issued December 7, 1946. comes be- 
fore the Commission and asks that the Commission pass upon and provide a 
proper book value and depreciation reserve for the property acquired. 

With its application the Company presents a valuation statement as of June 
5, 1946, of said acquired property prepared by E. Holley Poe and Associates. 
This statement gives the estimated original cost of said property as $187,269.29; 
estimated depreciation, $84,906.54; estimated value June 5, 1946, $102,362.75. 

This Commission has on file in its office a field inventory of the same plant 
at Goldsboro made by the Tide Water Power Company, which was the owner at 
that time, as of December 31. 1934. This inventory gives the reproduction 
cost value of said property as $209,951.96 which was slightly less than the book 
value of said property shown on the books of the company at that time. Depre- 
ciating this property at the rate of 37p per annum for the past 12 years gives a 
value as of December 1, 1946 of $134,369.00. 

This Commission feels impelled to accept the Tide Water valuation rather than 
the one presented by the applicant as this inventory was made during a more 
normal period than the one presented by the applicant, therefore 

It Is Ordered, That the Goldsboro Gas Company is hereby authorized and 
directed to record on its books property in the aggregate sum of $134,369.00 
and accrued depreciation of $69,369.00, effective as of date said property was ac- 
quired. 

This 29th day of April, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z, Flack, Chief Clerk 

Docket No. 3850 

APPLICATION OF GOLDSBORO GAS COMPANY TO BORROW 
AN AMOUNT NOT TO EXCEED $25,000.00 

Order 

In this case the Goldsboro Gas Company comes before the Commission and 
asks for authority to borrow from Town and Country Gas Company an 
amount not to exceed $25,000.00 for the purpose of repairs and extensions to its 
plant at Goldsboro. 

It appearing to the Commission that the proposed transaction is for a lawful 
object within the corporate purposes of the utility, is compatible with the public 



70 N. C. Utilities Commission 

interest, is necessary to the proper performance by the utility of its service to 
the public as such utility and will not impair its ability to perform that service 
and is reasonably necessary and appropriate for such purposes, the Commission 
is of the opinion that the request of the Company should be granted, therefore, 

It Is Ordered, That the Goldsboro Gas Company is hereby authorized 
to borrow an amount from Town and Country Gas Company not to exceed 
$25,000.00, to be used in repairs and extension of its plant at Goldsboro. 
This 30th day of October, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
Charles Z. Flack, Chief Clerk 
Docket No. 4226. 

IN THE MATTER OF GOLDSBORO GAS COMPANY, 
GOLDSBORO, NORTH CAROLINA. 

Order 

To : Goldsboro Gas Company, Goldsboro, North Carolina ; 

You are hereby directed and required to appear before the North Carolina 
Utilities Commission, on Tuesday May 18th 1948, at 2 :30 P. M., to show cause, 
why, your rates shouldn't be adjusted, and why your plant shouldn't be improved. 
This notice is given under Section 62-74 of General Statutes. 

It Is, Therefore, Ordered, that Goldsboro Gas Company, Goldsboro, 
North Carolina, be, and it is hereby required to appear before the North 
Carolina Utilities Commission, in the Hearing Room located in the State Library 
Building, Raleigh, North Carolina, at 2:30 P. M., on the 18th day of May 
1948, to show cause, if any, it has, why rates shouldn't be adjusted, and why 
plant shouldn't be improved. 

By Order Of The Commission. 

This the 11th day of May 1948= 

R. G. Johnson, Commisstoner 
Attest : 

Charles Z. Flack, Chief Clerk 
Docket No. 4398 



Decisions and Adjustments of Complaints 71 

CITATION TO THE GOLDSBORO GAS COMPANY REQUIRING 

SAID COMPANY TO APPEAR BEFORE THE COMMISSION AND 

SHOW CAUSE WHY ITS RATES SHOULD NOT BE 

ADJUSTED AND ITS PLANT IMPROVED 

Order - 

APPEARANCES: 

For the Respondent : . 

W. F. Taylor, Goldsboro, North Carohna, for Goldsboro Gas Company, 

For the Protestants: 

James D. Evans, 900 North George Street, Goldsboro, North Caro- 
lina, for General Electric Company, 

Scott B. Berkeley, Goldsboro, North Carolina, as an observer for 
the City of Goldsboro. 

James W. Butler, Goldsboro, North Carolina, for the Goldsboro Chamber 
of Commerce and the Merchants Association, Inc. 

A, B. Sansbury, Goldsboro, North Carolina, for the City of Goldsboro. 

This cause comes before the Commission on its uwn motion ordering the 
Goldsboro Gas Company to appear before the Commission on Friday, June 11, 
1948, and show cause, if any it had, why its plant should not be improved and 
why its rates should not be revised. 

The company appeared before the Commission as directed and after a brief 
consultation the Commission issued the following order : 

"This case was called for hearing on Friday, June 11, 1948, and it was 
made to appear to the Commission that the Gas Company was willing and had 
been willing to cooperate with the Commission in working out a new schedule 
of rates provided said new schedule did not reduce the gross income of the com- 
pany ; and the company asks that they be given an opportunity to confer with 
the rate department of the Commission to that end before final action was 
taken in this proceeding. 

Whereupon, the case was postponed indefinitely until said conference could be 
consummated and a report made as to the outcome." 

In accordance with the above order the Goldsboro Gas Company made a 
customary study, revised its rates, and then conferred with the Commission's Rate 
Department concerning said revised rates. The Rate Department was of the 
opinion that the revised rates as proposed would not reduce the company's 
gross revenue, provided the cubic feet sales did not decline. Whereupon the pro- 
posed revised rates were properly advertised and the case was heard before 
the full Commission on October 14, 1948. 

The company's proposed rates consisted of Schedule No. 1 and Schedule 
No. 2, Schedule No. 2 would be applicable to all customers using two or more 



11 N. C. Utilities Commission 

major appliances. Schedule No. 1 would be applicable to all customers not served 
under Schedule No. 2. 

The witness for the company stated that in its eighteen months of operation 
the company has lost $20,612.05, which includes the cost of conversion to propane- 
air; that for the first seven months of this year the operating loss was ap- 
proximately $2,041.78; that the price of propane has increased from 2^ to 
6^ cents per gallon and that freight rates have risen 50 per cent ; that the 
total cost of furnishing 1000 cubic feet of gas is approximately $1.07; that the 
proposed revised rates would reduce the bills of T^'h customers, would not ef- 
fect the bills of 207 customers, and would increase the bills of 722 customers, in- 
cluding 31 who have been buying gas well below cost; that it is estimated the 
proposed rates would produce gross revenue of approximately $9000.00 annually ; 
and that the company has reduced its unaccounted-for gas losses from MYz 
to 21 per cent. 

The protestants took the position that Rate Schedule No. 2 was unfavorable 
to large users since all consumption in excess of 10,000 cubic feet would be billed 
at a straight rate of $1.00 per 1.000 cubic feet and, as such, would not offer any 
incentive for industrial expansion in the City of Goldsboro. 

While the Commission can appreciate the position taken by the protestants, 
at the same time the Commission is strongly opposed to any class or group of 
customers receiving .service at less than the actual cost of furnishing same for the 
reason that when any customer of any public utility pays less than it costs the 
utility to provide the service other customers are required to pay more than 
they should pay to subsidize the other customers. 

From the testimony in the case and from other pertinent information available 
to the Commission, the Commission finds that the company has shown that con- 
siderable progress has been made in the improvement of its plant and in the 
reduction of its unaccounted-for gas losses ; that the proposed rates are com- 
parable to those now in effect by similar companies ; that the proposed rates are 
fair and reasonable ; that the company has satisfied the Commission's show 
cause order. 

Wherefore, It is Ordered that proposed Rate Schedule No. 1 and No. 2, 
of which copies are here-to attached, be and the same are hereby authorized and 
approved. 

It Is Further Ordered that the rates herein approved shall become 
effective on all billings on and after December 1, 1948, and shall supersede all 
existing rates of the company now in effect. 

By Order of this Commission, 

This the 19th day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chxe] Clerk 

Docket No. 4398 



Decisions and Adjustments of Complaints IZ 

NORTH CAROLINA GAS COMPANY FUEL CLAUSE 
FOR GAS SCHEDULES 

Order 

In this case the North Carohna Gas Corporation comes before the Commission 
and asks for authority to incorporate a fuel clause in its gas schedule now in 
effect. 

The Commission is of the opinion that the proposed fuel clause is proper and 
accordingly should be authorized as requested therefore 

It Is Ordered, That on bilings on and after date of this order the North 
Carolina Gas Corporation is hereby authorized to put into effect the following 
fuel clause which shall be incorporated in its efifective schedules : 

"When the delivered cost of propane increases or decreases .25c per gallon or 
"lore, the price of the gas to the consumer shall be increased or decreased 
1.625c per M.C F. for each such .25c per gallon increase or decrease in delivered 
cost as of January 1. 1948. Delivered cost shall be the cost of propane on the 
railroad siding at the Reidsville-Leaksville or Lexington-Thomasville, North 
Carolina plants." 

This 6th day of April, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Attest : 

Charles Z, Flack, Chief Clerk 

Docket No. 4368 

APPLICATION OF THE NORTH CAROLINA GAS CORPORATION 

AND THE ELIZABETH AND SUBURBAN GAS COMPANY 

FOR APPROVAL OF DEMAND NOTE ISSUES 

Order 

In this case the North Carolina Gas Corporation and the Elizabeth and 
Suburban Gas Company have issued Demand Notes in favor of their parent 
company, The Pennsylvania and Southern Gas Company. In the case of the 
North Carolina Gas Corporation these notes amount to $48,700. and in the case 
of the Elizabeth and Suburban Gas Company they amount to $19,100. 

The petitioners express the opinion that it is not necessary to get the approval 
of this Commission for such issues; however, they are of the opinion that this 
position on^ their part might be challenged, therefore, they ask a ruling on this 
matter and request that in the event the Commission rules that the Commission's 
authority is necessary that the Commission grant the necessary authority. 

The Commission can readily see that there is an element of doubt about the 
need for the Commission's authorization in the case at issue but since the notes 



74 N, C. Utilities Commission 

at issue are unrestricted as to time, the Commission rules that the authority of 
this Commission is necessary to give validity to them. 

The said note issues, in the opinion of the Commission, are (a) for a lawful 
object within the corporate purposes of the said utilities, (b) are compatible with 
the public interest, (c) are necessary and consistent with the proper performance 
by the utilities of their service to the public as such utilities and will not impair 
their ability to perform that service and, (d) are reasonably necessary and ap- 
propriate for such purpose, therefore 

It Is Ordered That the said Demand Notes issued by the North Caro- 
lina Gas Corporation and the Elizabeth and Suburban Gas Company to their 
parent company, The Pennsylvania and Southern Gas Company, referred to 
herein, are hereby approved. 

This 8th day of April, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z, Flack, Chief Clerk 

Docket No. 4367 

INCREASE IN GAS RATES OF PIEDMONT GAS COMPANY 

Order 

In this case the Piedmont Gas Company comes before the Commission and 
asks that it be granted authority to put into effect the following rate schedule 
to replace all of its schedules now in effect : 

First 1000 cu. ft. $1.95 per 1000 cu. ft= 

Second 1000 cu. ft. 1.60 per 1000 cu. ft. 

Third 1000 cu. ft. 1.40 per 1000 cu. ft. 

Fourth 1000 cu. ft 1.20 per 1000 cu. ft. 

Fifth 1000 cu. ft. 1.20 per 1000 cu. ft. 

Next 55000 cu. ft. 1.10 per 1000 cu. ft. 

Next 40000 cu. ft. .95 per 1000 cu. ft. 

All over 100,000 cu. ft. .90 per 1000 cu. ft. 

Monthly minimum: 700 cu. ft. or less $1.50. 

Above schedule based on 540 B.T.U. gas. 

This schedule the Company contends is needed to stop the losses that the 
Company is now sustaining each month in gas operation owing especially to 
its low combination rate schedule in effect. It is estimated that the proposed 
schedule will increase the Company's revenue by about $750 per month. 

Financial statements presented by the Company for the months of October, 
November, and December, 1946, show losses in gas operation as follows: 
October, $2,721.91 ; November $1,434.50; December, $1,583.75— a total for the three 
months, $5,740.16. The profit on the sale of merchandise, etc. for the same period 
was $6,036.34 which, as a whole, netted the company a profit of $296.18. The 



Decisions and Adjustments of Complaints 75 

Company asserted that the profit on merchandise could not be expected to con- 
tinue while the gas operation would continue to show a loss. 

The showing made by the Company was convincing to the Commission that the 
Company needed additional revenue immediately if it is to continue as a needed 
public servant. It furthermore appeared to the Commission that the rate pro- 
posed is fair and reasonable and under the circumstances should be authorized, 
therefore, 

It Is Ordered, That effective on bills rendered on and after April 1, 1947, 
the Piedmont Gas Company is hereby authorized to put into effect the following 
rate schedules in lieu of all existing schedules : 

First 1000 cu. ft. $1.95 per 1000 cu. ft. 

Second 1000 cu. ft. 1.60 per 1000 cu. ft. 

Third 1000 cu. ft. 1.40 per 1000 cu. ft. 

Fourth 1000 cu. ft. 1.20 per 1000 cu. ft. 

Fifth 1000 cu. ft. 1.20 per 1000 cu. ft. 

Next 55000 cu. ft. 1.10 per 1000 cu. ft. 

Next 40000 cu. ft. .95 per 1000 cu. ft. 

All over 100,000 cu. ft. .90 per 1000 cu. ft. 

Monthly minimum: 700 cu. ft. or less $1.50. 

Above schedule based on 540 B.T.U. gas. 

This the 27 day of March, 1947. 

^' Stanley Winborne, Chairman 

Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
Attest : 

Charles Z. Flack, Chief Clerk 
Docket No. 3875 

FUEL CLAUSE AUTHORIZED FOR PIEDMONT GAS COMPANY 

Order 

In this case the Piedmont Gas Company comes before the Commission and asks 
that it be granted authority to supplement its present rate schedule with the 
following Fuel Clause: 

The rates in this schedule are based on the cost of propane gas at 
7^c per gallon delivered at Company's plant. For each j4c increase 
above, 7^c per gallon the rate charges above shall be increased 7c per 
1000 cu. ft. ; likewise for each y^c decrease in cost per gallon, below 
7Hc per gallon above rates shall be decreased 7c per 1000 cu. ft. 

In its application the Company states that it is now paying 9c per gallon for 
propane gas which cost only 7Hc per gallon when present schedule was approved 
causing an increase in cost of about $1,350,000 per month. It also presented a 
financial statement showing that in June, last, the Company had a deficit of 
$661.72; in July, a deficit of $1,531.59; and in August, a deficit of $1,154.07 
making an aggregate loss for the three months of $3,347.38. This statement shows 



76 N. C. Utilities Commission 

that but for the profit made on merchandise during this period the net loss 
would have been $8,806.97. 

In view of this loss the Company declares that it is facing a financial emer- 
gency which should receive immediate attention from this Commission without 
formal hearing. 

It was quite evident to the Commission that a financial emergency does exist 
in the affairs of the Company and that prompt action should be taken to prevent 
the threat of a shutdown of the plant and further loss as it is quite evident to 
the Commission that the Company caimot continue to operate at the losses being 
sustained, therefore, the Commission is of the opinion that the Company should be 
permitted to amend its present schedule by including in it the proposed Fuel 
Clause without a formal hearing but subject to hearing and review upon com- 
plaint, therefore 

It Is Ordered, That the Piedmont Gas Company is hereby authorized 
to amend its present schedule by incorporating in said schedule the proposed 
Fuel Clause, the amended schedule to be effective on billings on and afer October 
1, 1947. 

It Is Further Ordered, That this emergency order is subject to 
change by the Commission upon further investigation and will be modified if such 
action is deemed necessary without a hearing. 

It Is Further Ordered, That if upon investigation the Commission 
finds that the said Fuel Clause herein allowed produces an excessive charge as a 
whole or in part, then the amount of excess collected by said Piedmont Gas 
Company which the Commission finds to be excessive shall be refunded to 
the consumers in the manner prescribed for in General Statutes, Volume 3, 
Section 62-71. 

This order is accepted by the said Piedmont Gas Company subject to con- 
ditions herein set forth. 

This, the 1st day of October, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
Attest : 

Charles Z. Flack, Chief Clerk 
Docket No. 3875 

THE APPLICATION OF PUBLIC SERVICE COMPANY OF NORTH 

CAROLINA, INCORPORATED, FOR AUTHORITY TO ISSUE AND 

SELL $100,000.00 PRINCIPAL AMOUNT OF 5% SINKING FUND 

DEBENTURES. 

Order 

This cause arises upon the application of PUBLIC SERVICE COMPANY 
OF NORTH CAROLINA, INCORPORATED, for authority to issue and sell 
$100,000.00 principal amount of 5% Sinking Fund Debentures. 



Decisions and Adjustments of Coaiplaints 11 

After considering the Petition and the prior Order of the Commission and 
after considering the exhibits attached to the Petition setting forth the need 
for additional working capital as the basis for the issuance and sale of such 
Debentures, it is believed that public convenience and necessity v^ill be enhanced 
by the granting of this application for authority to issue and sell $100,000.00 
principal amount of 5% Sinking Fund Debentures as described in Exhibit A 
attached to said Petition, and the Commission is of the further opinion that the 
ability of the Petitioner to render public service will not be impaired by the 
issuance and sale of such Debentures. 

Wherefore, it is ordered that the Petition of Public Service Company Of 
North Carolina, Incorporated, be and the same is hereby granted and to 
that end Public Service Company Of North Carolina, Incorporated, is 
authorized to issue and sell $100,000.00 principal amount of 5% Sinking Fund 
Debentures, said Debentures to be in the principal amount of $1,000.00 each, 
numbered 1 to 100, inclusive, and to be dated as of December 1, 1947, each of 
said Debentures to be sold at a price of not less than $970.00 plus accrued 
interest. 

This 24th day of December, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

By Order of the Commission : 

Chas. Z. Flack, Ch'iej Clerk 

Docket No. 4275 

THE APPLICATION OF PUBLIC SERVICE COMPANY OF NORTH 

CAROLINA, INCORPORATED, FOR AUTHORITY TO ISSUE AND 

SELL 5,000 SHARES OF ADDITIONAL COMMON CAPITAL STOCK 

WITHOUT PAR VALUE. 

Order 

This cause arises upon the application of PUBLIC SERVICE COMPANY 
OF NORTH CAROLINA, INCORPORATED, for authority to issue 5,000 
shares of additional common capital stock without par value to be sold to present 
stockholders on a pro rata basis and the remainder of such issue to be offered 
to the public generally in the event such additional stock should not be purchased 
by the present stockholders. 

After considering the Petition and the prior Orders of the Commission and 
after considering the exhibit attached to the Petition, it is believed that public 
convenience and necessity will be enhanced by the granting of this application 
for authority to issue and sell 5,000 shares of additional common capital stock 
without par value to be sold to present stockholders on a pro rata basis and 
the remainder of such issue to be offered to the general public in the event the 
present stockholders should not exercise their rights to purchase such stock. 
It further appears that the ability of the Petitioner to render public service 
will not be impaired by the issuance and sale of such stock, but on the contrary, 



78 N. C. Utiltttes Commission 

it appears that the abiUty of the Petitioner to render public service will be 
increased by the issuance of such additional stock. 

Wherefore, it is ordered that the Petition of PUBLIC SERVICE COM- 
PANY OF NORTH CAROLINA, INCORPORATED, be and the same is 
hereby granted, and to that end PUBLIC SERVICE COMPANY OF NORTH 
CAROLINA, INCORPORATED, is authorized to issue 5,000 shares of 
additional common capital stock without par value to be sold to present common 
stockholders on a pro rata basis, and in the event the present common stock- 
holders shall not exercise their right to purchase their pro rata portion of such 
additional stock, then the remainder thereof shall be offered to the public 
generally, such additional shares of common capital stock to be sold at not less 
than $20.00 per share. 

This 24th day of December, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

By Order of the Commission : * 

Chas. Z. Flack, Chief Clerk 

Docket No. 4276 

APPLICATION OF THE PUBLIC SERVICE COMPANY OF NORTH 
CAROLINA. INCORPORATED FOR AN INCREASE IN GAS RATES, 



Order 



APPEARANCES : 



For Applicant 

L. B. Hollowell 

For Protestants 
Allen Langston 
M. M. Melvin 

This case comes before the Commission in the form of an application of the 
Public Service Company of North Carolina, Incorporated, filed with this 
Commission on January 22, 1948 and heard on February 10, 1948 before 
Commissioners Hunter and Johnson. 

The applicant is requesting authority to increase in the amount of 10c per 
1000 cubic feet its Rate Schedule No. 1. This increase applies to all steps in the 
rate schedule. 

The witness for the applicant testified that this request for an increase is 
occasioned primarily by the greatly increased cost of labor and other operating 
expenses, exclusive of fuel, since May 1, 1947. This amounts to approximately 
$120,000 annually. A brief resume of further testimony offered by this witness 
follows : 

1. The operating ratio of operating expenses to gross sales for the first six 
months of 1947 was 85%; for the last half, 95%. 



Decisions and Adjustments of Complaints 79 

2. While gas operations show a net income of $15,940 for the year 1947 as an 
entity; the same shows a loss of $20,697 for the last six months or 3.96c per 
1000 cubic feet. 

3. Under present operating conditions the company will sustain a loss of 
$40,000 in 1948. 

4. The increase asked for would gross about $100,000 and net about $60,000 
a year. 

5. An increase is necessary if the company is to continue to develop and 
expand existing properties and render adequate and satisfactory service to its 
17,000 customers. 

6. The company's construction budget calls for an expenditure of $172,065 
in 1948. 

The witness filed, and the same were accepted by the Commission and made 
a part of the record, exhibits supporting his testimony. 

Protestants did not object to an increase in rates provided the applicant 
rendered adequate service. 

From the foregoing testimony and from financial records of the applicant on 
file with the Commission, the Commission finds that the company is in need of 
immediate relief; that such relief is necessary if the company is to maintain its 
financial integrity; and that the 10c increase per 1000 cubic feet of gas applied 
to gas operations shown for the year 1947 gives a return on net plant investment 
of 2.6%. 

From these facts the Commission concludes that the request for an increase 
in rates should be granted, therefore 

It Is Ordered that the Public Service Company of North Carolina, Incorpor- 
ated, be, and it hereby is, authorized to increase all billings under Rate Schedule 
No. 1 on and after March 1, 1948 in the amount of 10c per 1000 cubic feet. 

This 3rd. day of March 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 4294 



80 N. C. Utilities Commission 

TIDE WATER POWER COMPANY 

INCREASE IN GAS RATE OF UNITED STATES GOVERNMENT 

HOUSING PROJECT AT WILMINGTON, NORTH CAROLINA. 

Order 

DOCKET NO. 4273 
APPEARANCES : 

For Petitioner : 
A. E. Jones 

For U. S. Housing Administration : 
William F. Graham 

In this case the Tide Water Power Company comes before the Commission 
and asks that it be authorized to increase the gas rate on war housing projects 
in the Wilmington, North Carolina, area now being served under contract with 
the United States Government. 

This increase, the Company states, is sought on the grounds that the present 
rate is less than cost of production and is discriminatory against the users of 
similar service to other projects in Wilmington and customers in other towns 
now being served by the Company. 

The Company requests the Commission to authorize the following rates : 

PROJECT No. 31021 

First 208 MCF per Mo. $204.24 

Excess over 208 MCF per Mo. 68c/MCF 

Minimum charge per Mo. $204.24 

PROJECT No.' 31023 

First 66 MCF per Mo. $64.78 

Excess over 66 MCF per Mo. 68c/MCF 

Minimum Charge per Mo. $64.78 

PROJECT No. 31024 

First 93 MCF per Mo. $90.44 

Excess over 93 MCF per Mo. 68c/MCF 

Minimum charge per Mo. $90.44 

PROJECT No. 31025 

First 348 MCF per Mo. $341.84 

Excess over 348 MCF per Mo. 68/MCF 

Minimum charge per Mo. $341.84 

PROJECT No. 31026 

First 220 MCF per Mo. $216.10 

Excess over 220 MCF per Mo. 68/MCF 

Minimum charge per Mo. $216.10 

In addition to the above rates, a fuel charge as follows will be added: 



Decisions and Adjustments of Complaints 81 

The rate on monthly consumptions of over 10,000 cu. ft. shall be increased or 
decreased by the following amounts : 

A. 3 mills per each 100 cu. ft. increase or decrease for each whole .Ic 
increase or decrease from 7.3c per gallon in the price of oil F. O. B. 
the Wilmington Gas Plant. 

B. 4 mills per each 100 cu. ft. increase or decrease for each whole 10c 
increase or decrease from $7.60 in the price of gas coal F. O. B. the 
Wilmington Gas Plant. 

The witness for the Company stated when the rate in question was established 
by contract the cost of gas production was 60 cents per 1000 cubic feet and the 
cost now is 11 cents plus, and that during the same period the cost of oil had 
gone from 5.22 cents per gallon to 9.5 cents per gallon, and the cost of 
coal had increased from $5.50 per ton to $9.49 per ton. He stated that under 
the contract rate the Company was receiving an average of 62 cents to 64 
cents per 1000 cubic feet on the projects served, thus causing a loss of $10,000.00 
a year. 

The witness also stated that the winter months' consumption compared to 
the summer months' (almost double) indicated to his mind that the tenants 
in these projects were using gas for house heating, which is not in accord 
with the contract which was designed for cooking and water heating. 

The witness further stated that in his opinion the Government, during the 
winter months, was paying for approximately twice as much gas as it should 
be paying owing to the misuse of gas by tenants. He pointed out that the 
consumption for the month of August, 1947, was 1,187,000 cubic feet while the 
consumption during the month of December, 1947, was 2,063,000 cubic feet. 
He further voiced the opinion that if consumption was held to use as provided 
in contract the Government would pay no more in dollars and cents on an 
annual basis under the proposed rate than it is now paying. Under the pro- 
posed change he stated that the cost of gas to the Government would be ap- 
proximately 75c per 1000 cubic feet. 

The Government representative, Mr. William F. Graham, expressed no 
opinion as to the merits of the present or proposed rate but took the position 
that the rate in the contract should not be increased during the term of 
contract. 

From the testimony and the data submitted by the Company and its witness 
it is patent to the Commission that the Company is losing money on the 
contract at issue and that contract rate is a discrimination against similar con- 
tracts and gas users in general. 

The rates proposed by the Company, shown above, are, in the opinion of the 
Commission, fair and reasonable and should be granted. 

The mass sale of gas or electric current for grouped individuals, especially 
on an unmetered service basis, has never appealed to this Commission as this 
course is tantamount to a subsidy to a certain group and makes the regular 



82 N. C. Utilities Commission 

customer pay not only his own bill but required him to carry part of the load 
of the subsidized group. 

In the contract at issue the following appears : 

"If, during the period of this agreement, or during any period of extension 
or continuation thereof, the Utility makes general reduction in rates covering 
all classes of service provided herein, or if lower rates are made applicable to 
this general class of service, then such reductions shall be applicable to the 
rates for the service covered by this contract." 

The implication here is that the contract rate is subject to change by this 
Commission but owing to the Government's position "that such contracts may 
not be amended so as to increase the financial obligation of the Government 
without an equivalent return consideration," the Commission thinks it appropriate 
to set forth the law on the point at issue. 

This Commission is unequivocally vested with power to change the rate in 
any contract made by a utility under its jurisdiction and a customer at any time 
during the contract period w^hen in the opinion of the Commission said rate 
is unjust or discriminatory, after notice and hearing. 

This position of the Commission is sustained by the Supreme Court of North 
Carolina in its opinion handed down at the 1919 fall term of the Court in the 
case of the City of Charlotte, N. C, against the Southern Public Utilities 
Company where this Commission had increased the street railway fare of the 
Company in Charlotte above the fare provided in Company's contract with the 
city. (N. C. 179, Page 151) 

The Court in its opinion said in part ; 

"Accordingly, it is a fundamental principle of the constitutional system of the 
United States that rights of property, like all other social and conventional 
rights, are subject to such reasonable restraints and regulations established by 
law as the Legislature, under the governing and controlling power vested in it 
by the Constitution, may think necessary and expedient. And to these ends the 
Legislature, under its police power, may pass laws regulating the acquisition, 
enjoyment, and disposition of property, even though in some respects these may 
operate as a restraint on individual freedom or the use of property. The 
subordination of property rights to the just exercise of the police power has 
been said to be as complete as is the subjection of these rights to the proper 
exercise of the taxing power ; and it is held that this implied condition is 
quite irrespective of the source or character of the title. This principle is in 
effect an application of the maxim which underlies the police power, sic utere 
tuo ut alienum non laedas,' citing in support of the statement Chicago and Alton 
Railroad v. Transberger, 238 U. S., (iJ \ R.R. v. Goldsboro, 232 U.S., 548-558, 
and other cases. 

"In R. R. V. Goldsboro, supra, Associate Justice Whitney, for the Court, said: 
'For it is settled that neither the contract clause nor the due process has the ef- 
fect of overruling the police power of the State to establish all regulations that 
are reasonably necessary to secure the health, safety, good order, comfort, or 
general welfare of the community; that this power can neither be abdicated 



Decisions and Adjustments of Complaints 83 

nor bargained away, and is inalienable even by express grant, and that all 
contract and property rights are held subject to its fair exercise.' 

"In view of this power, and for its primary exercise, our General Assembly, 
chiefly in Rev., ch. 20, and amendments thereto, have created a Corporation 
Commission, given it general supervision over the railways, street railways, 
and like companies of the State, and empowered it to fix such rates, charges, 
and tariffs as may be reasonable and just, having in view the value of the 
property, the cost of improvements and maintenance, the probable earning capacity 
under the proposed rates, the sums required to meet operating expenses and 
other specified matters pertinent to such an inquiry." 

Under and by virtue of this Legislative authority and in the exercise of the 
power referred to, the commission in this instance, on notice given, have had 
an investigation, and, in their best judgment, have allowed the increase applied 
for by the petitioners, and, under the express provisions of the statute that are 
to be considered, the just and reasonable charges for the services rendered un- 
less and until they shall be changed or modified on appeal, or the further action 
of the commission itself, and under the principle illustrated and approved in the 
cases cited, and others of like kind, we must affirm the ruling of his Honor that 
any contract that the city of Charlotte may havei for a lower rate must yield to 
the public interest and requirement as expressed in this authoritative judgment 
of the commission. 

"Not only is the judgment of his Honor sustained by the principle more 
directly involved, but any other ruling in its practical application would likely 
and almost necessarily offend against the principle which forbids discrimination 
on the part of these companies towards patrons in like condition and circumstance. 
If a quasi-public company of this kind could evade or escape regulation estab- 
lishing fixed rates that are found to be reasonable and just by making long- 
time contracts or other, this regulation might be made to operate in furtherance 
of the very evil it is in part designed to prevent. 

"Accordingly, it has been very insistently held, in case of railroads, that the 
rates established by the Interstate Commerce Commission and published pursuant 
to their order shall always prevail as the charges for transportation notwith- 
standing any special contract for lower rates made by the parties. Texas 
Pacific v. Mugg, etc., 202 U. S., 242, and many other cases.' 

This position is also sustained in the opinion of the Supreme Court of North 
Carolina in the case of Corporation Commission against certain manufacturing 
companies in an opinion handed down at the 1923 spring term of the Court. 
(N.C. 185). 

In view of the foregoing, therefore 

It Is Ordered, that on billings on and after March 1, 1948, the Tide Water 
Power Company is hereby authorized and directed to put into effect the rate 



84 N. C. Utilities Commission 

schedules set forth abovq for service supplied to United States Government pro- 
jects Nos. 31021, 31023, 31024, 31025 and 31026 at Wilmington, North Caro- 
lina, in lieu of rate stipulated in contract for service at said projects. 

This, the 9th day of February, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4273 

APPLICATION OF THE TIDE WATER POWER COMPANY 
FOR AN INCREASE IN GAS RATES. 

Order 

APPEARANCES : 

For the Applicant: 

L, J, Poisson, Attorney, Wilmington, North Carolina. 

For the Protestants : 

William B. Campbell, Wilmington, N. C, appearing for the Housing 
Authority of Wilmington. 

R. A. Whitaker, Kinston, N. C, appearing for the Housing Authority 
of the City of Kinston. 

B. H. Marshall, Jr., Wilmington, Housing Authority of the City of 
Wilmington. 

W. H. Lee, New Bern, appearing for the City of New Bern. 

C. H. Von Rosenberg, Fayetteville, appearing for Fayetteville Housing 
Authority. 

William F. Graham, Atlanta, Georgia, appearing for Public Housing 
Administration. 

This matter came before the Commission on the application of the Tide Water 
Power Company for an increase in gas rates as per schedules hereto attached, 
was properly advertised, and was heard by the Commission, en bloc, on October 
13, 1948. 

There was no opposition to any of the requested increases except those under 
proposed Schedule 6, which is applicable to multiple housing projects. These 
increases were opposed by representatives of the Housing Authorities of Wil- 
mington, Kinston, and Fayetteville and the Public Housing Administration, 
Atlanta, Georgia, on the grounds that the Housing Authorities provide low- 
rent housing facilities for families in low income groups; that since each project 
is metered on a master meter and owns its own distribution system, the com- 
pany here experiences a saving in meter reading, billing, maintenance, and de- 



Decisions and Adjustments of Complaints 85 

preciation expenses; that on August 1, 1947, the applicant increased the rates 
of the Housing Projects without increasing the rates for other classes of 
customers. 

While the Commission recognizes that the cost of furnishing gas under pro- 
posed Schedule 6 is considerably less than that for the other proposed sched- 
ules, this Commission is strongly opposed to any class of customers receiving 
service at less than the actual cost of furnishing same for the reason that when 
any customer of any public utility pays less than it costs the utility to provide 
the service other customers are required to pay more than they should pay to 
subsidize the other customers. 

The uncontroverted testimony of the witness for the company was as follows : 

1. Had the new rates been in effect during the 12 months ending June 30, 
1948, the average rate paid by housing projects, customers using gas for 
cooking and miscellaneous commercial service, customers using gas for 
cooking and controlled water heating and other types of higher use service, 
and customers using gas for heating service would have been 92c, $1.87, 
$1.56, and $1.02, per MCF, respectively. 

2. The gas department of the Tide Water Power Company is in serious 
need of increased revenue to place its income position in something other 
than a deficit condition. 

3. During the past two or three years in the manufactured gas industry 
there have been a great number of gas rate increases granted by various 
commissions throughout the country. 

4. Under present day circumstances a fuel clause is absolutely essential in 
gas rates for manufactured gas since fuel represents one of the largest parts 
of the total cost of rendering gas service. 

5. From December 31, 1936, to June 30, 1948, the cost of gas coal to the 
company has increased from $5.53 to $9.16 per ton or 166 per cent; gas 
oil in the same period has increased from 5.6c to 9.6c per gallon, or about 
170 per cent. 

6. According to the Harvey Index labor costs have risen approximately 84 
per cent since 1940. 

7. Material and equipment costs have increased from 50 to 100 per cent 
since 1940. 

8. The proposed rates will produce approximately $106,283.00 additional 
revenue per year. 

9. In the aggregate the proposed rates are below the cost of service all 
the way through. 

In view of the foregoing testimony and other pertinent information available 
in this case, this Commission finds that the applicant has shown that there 
exists the need for additional net revenue ; and that the requested rates are fair 
and reasonable and should be allowed in full. 



86 N. C. Utilities Commission 

Wherefore It Is Ordered That the proposed gas rate schedules shown in the 
application as Exhibits A through F and hereto attached be, and the same 
are hereby, authorized and approved. 

It Is Further Ordered That those rates shall become effective on all billings 
on and after November 1, 1948. 



This the 29th day of October, 1948. 



Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4521 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G, Johnson, Commissioner 



TELEGRAPH COMPANY 

WESTERN UNION TELEGRAPH COMPANY IN THE 
MATTER OF INCREASES IN RATES 

Order 

In this case the Western Union Telegraph Company comes before the Com- 
mission asking for authority to increase its North Carolina intra-state message 
rates by 20% in lieu of the 10% increase granted the company by this Com- 
mission in its order dated June 25, 1946 and increases in certain other rates 
which are made in relationship to message rates. Rate schedules which will 
produce the rate increases requested are filed with, and made a part of, the 
company's application. 

In its application the company says: "To provide relief from the financial 
emergency with which the Western Union Telegraph Company is again con- 
fronted, the Federal Communications Commission has authorized the Telegraph 
Company to make further increases in its interstate rates and it is desired to 
place in effect similar further increases in intra-state rates." 

It is further stated in the application that: "In its Report T-44 issued Decem- 
ber 27, 1946, the Federal Communications Commission allowed the substitution of 
an increase of 20% in place of the 10% general increase made effective June 12, 
1946, on interstate messages within the United States. This was equivalent to an 
increase of 9.09% on currently effective rates. The limit of one year on the 
previous flat percentage increase of 10% was removed and no time limitation was 
specified with respect to application of the substituted 20% increase. In ad- 
dition, F.C.C. permitted increases averaging 15% in interstate C.N.D. (stock 
quotation and sports news) service charges and 4.3% in interstate money order 
charges between points within the United States. Pending further study, action 
was deferred by F.C.C. with respect to the Company's proposed rate revisions 
on traffics to Canada, Labrador, Newfoundland, and Saint Pierre and Miquelon 
Islands. 

"It is estimated that the application of the adjustments thus approved by the 
Federal Communications Commission for interstate services will produce $8,- 
600,000 in additional revenues annually and that the application of similar changes 



Decisions and Adjustments of Complaints 87 

in the intrastate schedules will produce $1,300,000 annually, or a total of $9,- 
900,000. This will not be sufficient for the Company to continue its operations on 
a sound financial basis, but, as indicated in F.C.C. Report T-44, the partial in- 
crease was granted as an emergency measure pending further consideration of the 
Company's original proposals. Meanwhile, the requisite tariff amendments cov- 
ering the adjustments in interstate telegraph rates and money order charges 
authorized by the F.C.C. have been filed with that Commission and became ef- 
fective December 21, 1946, and the interstate C.N.D. rates revisions became 
effective January 1, 1947. 

"In order to obtain the urgently needed additional revenues, it is desired to 
make adjustments in intrastate rates corresponding to the changes thus already 
made for interstate service, including the elimination of exceptional rates. 
Appropriately revised state tariff pages have accordingly been prepared and are 
herewith submitted to your Commission. It is estimated that the application 
of these amended tariffs to the telegraph business in your State, based on the 
information for the latest available 12 months' period (ending September 30, 
1946) will produce revenues, in excess of those which would obtain under 
present rates, in the amount of $28,000. This does not include any allowance 
for elimination of interstate exceptional rates as there are no such rates to be 
eliminated in your State." 

The testimony of the Company's witnesses substantiated all of allegations above 
and showed that the main difficulty with the telegraph company is found in the 
cumulative effect of the two wage increases imposed by the War Labor Board in 
1946 amounting to more than $48,000,000 per annum. 

The Commission is of the opinion that a financial emergency, does exist in the 
affairs of the Company owing to wage increases and that existing conditions 
warrant the increase requested. 

The records show that the company lost in excess of $11,000,000 during the 
3'-ear 1946, therefore it appears extremely doubtful to the Commission that the 
rate increase granted by this order and the increases granted by the Federal 
Communications Commission and other commissions, made necessary by wage 
increases imposed on the company, will keep the company out of the "red" un- 
less drastic economies are effected. It is further apparent to the Commission that 
if threatened wage demands should materialize and result in the imposistion of 
further wage increases on the company, the company would be doomed to 
insolvency as higher rates would only serve to curtail business and revenue 
and hasten the date of disaster, therefore 

It Is Ordered, That effective June 1, 1947, the Western Union Telegraph 
Company is hereby authorized to increase its message rates and other rates 
which bear a relationship to message rates as set first above and covered by 
schedule filed in this proceeding. 



This the 21st day of May, 1947. 



Attest : 

Charles Z. Flack, Chief Clerk 
Docket No. 3666 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



2- Party 


4-Party 


$3.25 


$2.50 


2.00 


1.75 



88 N. C. Utilities Commission 

TELEPHONE COMPANIES 

INCREASE IN THE EXCHANGE RATES OF THE 
ANDREWS TELEPHONE COMPANY 

Order 

In this case the Andrews Telephone Company comes before the Commis- 
sion and asks that it be granted authority to put into effect the following rates 
at its exchange at Andrews : 

1-Party 

Bushiess $4.00 

Residence 2.50 

The installation of a new switchboard, the increased cost in operating ex- 
penses, and the fact that the company made no profit last year are reasons given 
for the proposed rate increase. 

It became quite apparent to the Commission from the showing made by 
the company and the reports on file in this office that the company needs and 
should have increased revenue ; that the rates proposed are reasonable and 
necessary ; and the further fact found that new switchboard has been installed, 
and is now in operation and will add to the efficiency of the service ; therefore, 

It Is Ordered, That effective August 1, 1947, the Andrews Telephone Com- 
pany is hereby authorized to put into effect the rate schedule proposed and set 
forth above. 

This, the 15th day of July, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest ; 

Charles Z. Flack, Chief Clerk 

Docket No. 3874 

CAROLINA TELEPHONE AND TELEGRAPH COMPANY PETITION 
FOR AUTHORITY TO ISSUE AND SELL THREE MILLION 
($3,000,000.00) DOLLARS PRINCIPAL AMOUNT OF THIRTY- 
YEAR 23/4% DEBENTURES, DUE FEBRUARY 1, 1977, THE 
PROCEEDS OF THE SALE OF SUCH DEBENTURES TO 
BE APPLIED TO THE RETIREMENT OF CERTAIN 
OUTSTANDING OBLIGATIONS AND TO OTHER 
PURPOSES AS STATED IN 
SAID PETITION 

Order 

This matter comes before the North Carolina Utilities Commission upon the 
petition or application of Carolina Telephone and Telegraph Company (Herein- 
after referred to as the Company) for authority to issue and sell Three Million 
Dollars ($3,000,000.00) principal amount of its Thirty- Year 2^% Debentures, due 



Decisions and Adjustments of Complaints 89 

February 1, 1977, and to execute and deliver an Indenture of the Company sub- 
stantially in the form filed with the petition for the purpose of providing and 
declaring the terms and conditions under which the Debentures are to be issued. 

It has been made to appear to the Commission that during the period between 
January 1, 1941, and December 31, 1946, the Company has made net additions to 
its telephone plant and properties amounting to Three Million Six Hundred 
Seventy-One Thousand Three Hundred Ninety-Nine Dollars ($3,671,399.00). 
With increasing demands made upon the Company for telephone service, there is 
a large accumulation of unfilled demands for service which the Company desires 
to meet as efficiently and expeditiously as possible. The Company is further of 
the opinion that it will be necessary in the next few years to make gross ad- 
ditions to telephone plant and properties in an amount in excess of Seven Mil- 
lion Dollars (7,000,000.00) which amount will be in addition to the amount 
above set forth. Expenditures in construction activities and for material and 
supplies have been financed by the Company in part by short term bank loans, 
which at the present time amount to Two Million Five Hundred Thousand 
Dollars ($2,500,000.00). The Company states that it now desires to take ad- 
vantage of the existing favorable money market through the issue and sale of 
Debentures to fund at this time these bank loans and to provide some additional 
cash in anticipation of expenditures which the Company expects it will incur 
in early 1947. 

The Company has filed with this Commission a form of Purchase Agreement 
under which the Company proposes to issue and sell Three Million Dollars 
($3,000,000.00) principal amount of Thirty- Year 2>4% Debentures, due February 
1, 1977, at a purchase price of 100% of principal amount plus accrued interest 
to date of delivery. It appears that the Company has obtained commitments 
from the following purchasers for such Three Million Dollars ($3,000,000.00) 
principal amount of Debentures proposed to be issued, the Debentures to be sold 
at private sale and without any public offering: 

New York Life Insurance Company $750,000 

New York, N. Y. 

Bankers Trust Company 750,000 

New York, N. Y. 

The Union Central Life Insurance Company 750,000 

Cincinnati, Ohio 

Teachers Insurance & Animity Association 300,000 

of America, New York, N. Y. 

Western & Southern Life Insurance Company 250,000 

Cincinnati, Ohio 

Life Insurance Company of Virgina 200,000 

Richmond, Virginia 

The Company is proposing to issue such Three Million Dollars ($3,000,000.00) 
principal amount of Debentures under an Indenture to be dated as of February 
1, 1947, with Bankers Trust Company (New York) as Trustee. The Debentures 



90 N. C, Utilities Commission 

will mature on February 1, 1977, will bear interest at the rate of 2^% per 
annum payable semi-annually, will be redeemable at the option of the Company 
at the following percentages of the principal amount, namely: to and including 
January 31, 1953, at 104%; thereafter to and including January 31, 1959, at 
103%; thereafter to and including January 31, 1965, at 102%; thereafter to and 
including January 31, 1971, at 101%; and thereafter at 100%; and will be is- 
sued on the further terms and conditions set forth in the proposed form of 
Indenture filed as Exhibit "B" with the petition. 

It appears from exhibits filed with the petition that the issue and sale by the 
Company of the Debentures, as proposed, have been authorized by the Board 
of Directors and Stockholders of the Company in the manner provided by law 
and as required by the Charter of the Company. 

Upon consideration of the petition and the exhibits attached thereto, the Com- 
mission finds as a fact that the granting of the petition of the Company will 
be compatible with the public interest, is necessary, appropriate and consistent 
with the proper performance by the Company of its service to the public as a 
public utility, will not impair the Company's ability to perform that service, is 
necessary and reasonably appropriate for such purpose, and is within the corporate 
powers of the Company. 

Wherefore Carolina Telephone and Telegraph Company is hereby authorized 
to issue and sell at private sale, and without any public offering, Three Million 
Dollars ($3,000,000.00) principal amount of its Thirty- Year 2^% Debentures, 
due February 1, 1977, as proposed by the Company, and to execute and deliver 
its Indenture substantially in the form filed with the petition of the Company 
as Exhibit "B" thereto for the purpose of providing and declaring the terms and 
conditions under which the Debentures are to be issued. 

Nothing contained in this Order or in the findings of fact herein made shall 
be construed to imply any guarantee or obligation as to such Debentures on the 
part of the State of North Carolina or the North Carolina Utilities Com- 
mission. 



This 17th. day of February, 1947, 



Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3920 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R: G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 91 

APPLICATION OF THE CAROLINA TELEPHONE AND TELEGRAPH 
COMPANY FOR REVISION OF ITS GENERAL EXCHANGE TARIFFS 

' Order 

APPEARANCES : 
For the Applicant : 

L. W. Hill, President, Carolina Telephone and Telegraph Co., Tarboro, 
N. C. 

For the Protestant : 
None 

WiNBORNE, Chairman: This cause comes before the Commission in the ap- 
plication of the Carolina Telephone and Telegraph Company filed with this 
Commission on March 26, 1947, amended May 15, 1947 and heard on May 19, 
1947 before the full Commission. 

The applicant is asking for authority to make certain increases in its general 
exchange rates, both business and residential, and to make minor upward ad- 
justments in the charges for business extensions, private branch exchange switch- 
boards and extensions, and rural service. 

Mr. Harold Stein, Commissioner, Office of Temporary Controls, Office of 
War Mobilization and Reconversion, Washington, D. C, was properly notified 
but made no appearance and filed no objection. 

The Company's witness, Mr. Hill, stated that his company is chartered under 
the laws of the State of North Carolina for the purpose of doing a general 
telephone and telegraph business throughout the State of North Carolina and 
that the Company's books are kept in strict accordance with the uniform system 
of accounts as prescribed by the Federal Communications Commission. 

The prime testimony adduced by Mr. Hill supporting his company's application 
covered a multiplicity of arguments, the more pertinent ones being to the effect : 

That from 1940 to 1946 while revenues increased from $1,809,785 to $4,039,693, 
or 123%, expenses increased from $1,427,444 to $3,600,993, or 152%. 

That the scarcity of materials and equipment, along with the unprecedented 
demand for additional service, has made it imperative to keep in service all 
items that could possibly render service thereby holding the amount of displaced 
plant relatively small compared to the usual operations; 

That his company did not profit from the war and that the earnings have 
gradually declined from 1940 to the present time; 

That the ratio of earnings to capital obligations has fallen from 6.92% for 
1945 to 2.92% for the first quarter of 1947 raised to an annual basis ; 

That the ratio of earnings to net investment — gross book investment less 
depreciation reserve — for the same periods has dropped from 6.66% to 3.31%; 

That the steady decline in earnings has been attributable primarily to the in- 
creasing costs of labor and material ; 



92 N. C. Utilities Commission 

That in February the Company, in conformity with the so-called national 
pattern of wage increases, voluntarily granted the fourth general increase in 
salary and wages since 1941 ; and 

That a fifth wage increase amounting annually to $170,700 has been granted 
this month, effective May, 1947. 

The witness offered Exhibits 1 through 14 to support his claims. 

In the application it is stated tiiat continuation of petitioners' present grossly 
inadequate schedules of exchange rates and charges would not permit it to 
maintain and expand an adequate telephone service for the people in its ter- 
ritory and would therefore, be contrary to the public interest as well as to the 
rights of petitioner. 

The revision of rates as set forth in the application are in the main increases 
and amounts to approximately $328,000.00 annually. After charging the $328,000.00 
v/ith the proper deductions of the latest wage increase of $170,700.00 annually 
and both state and Federal taxes in the amount of $76,736.92, the residual 
amounts to $80,563.08. This plus the net income of $63,571.00 for the first quarter 
of 1947, raised to an annual basis, aggregates some $334,847.00 net. On net in- 
vestment as of the first quarter of 1947 raised to an annual basis this gives a 
return of 4.4% ; and on capital stock, a return of 6.3%. 

The annual reports on file with this Commission show that the petitioning 
company has made more money in years past and at lower rates than probably 
any telephone company within the State. The explanation given for this by the 
company officials is that it constructed the greater part of its system during 
the period of depression in the early 1930s when both labor and materials were 
cheap. Also during the same period it converted nearly every one of its ex- 
changes to automatic dial which requires far less labor and wage expense. If 
these things had not been done, due to the foresight of the officers of the 
petitioning company, it was contended, that the increase asked for in this peti- 
tion would necessarily have been far greater than that which is asked for. 

From the applicant's petition and testimony and from financial records on file 
in this office, it is patent to the Commission that the Company needs some 
relief ; however, it cannot grant the full request. 

The bulk of the increase as proposed is to come from general business and 
residential exchange service. A careful canvassing of the proposed rates for this 
service shows that the business increases asked for at some of the exchanges are 
out of line and should be adjusted downward. This adjustment amounts to ap- 
proximately $20,000.00 per annum. The proposed residential rates are found to 
compare favorably with those for similar exchanges outside the company and 
are to be allowed. 

The applicant has also asked for increases in its charges for business ex- 
tensions, private branch exchange switchboards and extensions, mileage charges, 
and rural service. The proposed charges for business and private branch exchange 
extensions and mileage charges are in line with those of other companies and the 
Commission is of the opinion that these should be allowed. The present charges 
for private branch exchange switchboards and rural service are found to be 



Decisions and Adjustments of Complaints 93 

fairly comparable to those of adjacent and similar exchanges. The Commission 
believes that no increase in these should be allowed. This will further cut the 
applicant's request by some $19,000.00 per annum. 

The pruning from the $328,000.00 requested the sum of $20,349.00 on business 
exchange rates and $19,000.00 on other services leaves $288,651.00. After deducting 
the increased labor costs and all taxes, this leaves $58,648.00. This plus 
$254,284.00, the net income for the first quarter of 1947 raised to an annual 
basis, gives a true net income of approximately $313,000.00, which represents a 
return of 4.1 percent on net investment and 5.9 percent on capital stock. 

The Commission finds that over 60% of the company's gross revenue is de- 
rived from its toll business. This business is an exceedingly variable factor. For 
instance after World War I, toll revenue fell approximately to the level of ex- 
change revenue. The same trend, but somewhat stronger, is to be expected to- 
day following World War II. especially in light of the fact that the Federal 
Government established several huge bases during the last war in the territory 
owned by the applicant. This trend has already commenced. 

The fact must not be overlooked that the recent sale of debentures in the 
amount of $3,000,000.00 was in part necessitated by the extremely heavy de- 
mand during the war by the Federal Government for immediate service under 
varying conditions which called for hasty construction of plant from high cost 
labor and material, in many cases both of which were of inferior grade; con- 
sequently the company enjoyed very little wartime profits. Even though it is 
not an operating expense, interest in the amount of $82,500.00 per annum must 
be paid on this bonded indebtedness. 

In view of the existing unstable conditions in both the labor and material 
fields, the Commission feels that this cause should remain open for further 
study. 

The Commission is of the opinion that the increased rates and charges al- 
lowed in this order are compatible with the public interest, necessary or ap- 
propriate for and consistent with the proper performance by the utility of its 
service to the public as such utility, therefore 

It Is Ordered That the Carolina Telephone and Telegraph Company be 
authorized, and it hereby is, to place in effect on all billings on and after 
August 1, 1947, the approved general exchange rates, the private branch ex- 
change and business extension charges, and the mileage charges which follow : 

EXCHANGE RATES 

Exchange Approved Rates 

Ahoskie Bl $4.25 B2 $3.50 B4 $3.00 

Rl 2.50 R2 2.00 R4 1.50 

Aulander Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Aurora Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 



94 N. C. Utilities Commission 

Ayden Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Bailey Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Bayboro Bl 4.25 B2 3.50 B4 3.00 

Rl 2.75 R2 2.25 R4 1.75 

Beaufort Bl 5.00 B2 4.25 B4 3.50 

Rl 2.75 R2 2.25 R4 1.75 

Belhaven Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Benson Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Bethel Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Bladenboro Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Clayton Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Clinton Bl 4.25 B2 3.75 B4 3.25 

Rl 2.50 R2 2.00 R4 1.75 

Colerain Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Columbia Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 ~ 

Conway Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Dunn Bl 4.50 B2 3.75 B4 3.25 

Rl 2.50 R2 2.00 R4 1.75 

Elizabethtovvn Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Elm City Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Enfield Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Farmville Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Fayettevillc Bl 5.75 B2 4.75 B4 3.75 

Rl 3.00 R2 2.50 R4 2.00 



Decisions and Adjustments of Complaints 95 

Fountain Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

Franklinton Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Fremont Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

^ Gatesville Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Greenville Bl 5.25 B2 4.25 B4 3.75 

Rl 2.75 R2 2.25 R4 175 - 

Grifton Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 ~ 

Halifax Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Henderson Bl 5.00 B2 4.25 B4 375 

Rl 2.75 R2 2.25 R4 175 

Holly Ridge Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

Jackson Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Jacksonville Bl 4.25 B2 3.75 B4 3.25 

Rl 2.50 R2 2.00 R4 1.75 

Kenly Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Kinston Bl 5.25 B2 4.25 B4 3.75 

Rl 2.75 R2 2.25 R4 175 

La Grange Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Lewiston Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

Lillington Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Littleton Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 ~ 

Louisburg Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Lucama Bl 3.50 B2 2.75 — 

Rl 2.25 R2 175 — 



96 N. C. Utilities Commission 

Maxton Bl 4.00 B2 3.25 





Rl 


2.50 


R2 


2.00 


— 




Morehead City 


Bl 


5.00 


B2 


4.25 


B4 


3.50 




Rl 


2.75 


R2 


2.25 


R4 


1.75 


Murfreesboro 


Bl 


4.00 


B2 


3.25 


. 






Rl 


2.50 


R2 


2.00 


— 




Nashville 


Bl 


4.00 


B2 


3.25 









Rl 


2.50 


R2 


2.00 


— 




New Bern 


Bl 


5.25 


B2 


4.25 


B4 


3.75 




Rl 


2.75 


R2 


2.25 


R4 


1.75 


Norlina 


Bl 


3.75 


B2 


3.00 









Rl 


2.25 


R2 


1.75 


— 




Oriental 


Bl 


4.25 


B2 


3.50 


B4 


3.00 




Rl 


2.75 


R2 


2.25 


R4 


1.75 


Oxford 


Bl 


4.50 


B2 


3.75 


B4 


3.25 




Rl 


2.50 


R2 


2.00 


R4 


1.75 


Pinetops 


Bl 


3.75 


B2 


3.00 


— 






Rl 


2.25 


R2 


1.75 


— 




Plymouth 


Bl 


4.00 


B2 


3.25 


— 






Rl 


2.50 


R2 


2.00 


— 




Raeford 


Bl 


4.00 


B2 


3.25 









Rl 


2.50 


R2 


2.00 


— 




Red Springs 


Bl 


4.00 


B2 


3.25 


— 






Rl 


2.50 


R2 


2.00 


— 




Rich Square 


Bl 


3.75 


B2 


3.00 


— 





Rl 2.25 R2 1.75 — 

Roanoke Rapids Bl 5.25 B2 4.25 B4 3.50 

Rl 2.75 R2 2.25 R4 1.75 

Robersonville Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Rocky Mount Bl 5.75 B2 4.75 B4 3.75 

Rl 3.00 R2 2.50 R4 2.00 

Roseboro Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Roxobel Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

St. Pauls Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 



( 



Decisions and Adjustments of Complaints 97 

Scotland Neck Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Seaboard Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

Smithfield Bl 4.50 B2 3.75 B4 3.25 

Rl 2.50 R2 2.00 R4 1.75 



Snow Hill Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Spring Hope Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Stantonsburg Bl 3.75 B2 3.00 — 

Rl 2.75 R2 1.75 

Tarboro Bl 4.75 B2 4.00 B4 3.50 

Rl 2.75 R2 2.25 R4 1.75 

Wake Forest Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Wallace Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Warrenton Bl 4.25 B2 3.50 B4 3.00 

Rl 2.50 R2 2.00 R4 1.50 

Warsaw Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Washington Bl 4.75 B2 4.00 B4 3.50 

Rl 2.75 R2 2.25 R4 1.75 

( Weldon Bl 5.25 B2 4.25 B4 3.50 

Rl 2.75 R2 2.25 R4 1.75 

Whitakers Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 

Williamston Bl 4.25 B2 3.75 B4 3.25 

Rl 2.50 R2 2.00 R4 1.75 

Wilson Bl 5.25 B2 4.25 B4 3.75 

Rl 2.75 R2 2.25 R4 1.75 

Windsor Bl 4.00 B2 3.25 — 

Rl 2.50 R2 2.00 — 

Winton Bl 3.50 B2 2.75 — 

Rl 2.25 R2 1.75 — 

Woodland Bl 3.75 B2 3.00 — 

Rl 2.25 R2 1.75 — 



98 N. C. Utilities Commission 



EXTENSIONS 




Business Extension 


$1.25 


P. B. X. Extension 


1.25 



MILEAGE CHARGES 

Individual line, private branch exchange trunk line, or ringing circuit 

per % mile or fraction thereof, per month $.63 

Two-party line, per l4 n^i^e or fraction thereof 

per month, each main station $.32 

Four-party line, per ^ mile or fraction thereof per month, 

each main station $.16 

It Is Further Ordered That this cause be retained for further study for a 
period of 15 months from the date of this order and that the applicant submit 
complete financial statements at the end of the first six months and at the end 
of one year. 

This 26th day of July, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R, G. Johnson, Cotnmissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3954 

CAROLINA TELEPHONE AND TELEGRAPH COMPANY PETITION 

FOR AUTHORITY TO ISSUE AND SELL 21,250 SHARES 

OF COMMON CAPITAL STOCK 

Order * 

This matter comes before the North Carolina Utilities Commission on the 
petition of Carolina Telephone and Telegraph Company (hereinafter referred to 
as the Company) for authority to issue and sell 21,250 shares of Common Capital 
Stock for cash at not less than par value of one hundred dollars ($100) per 
share. 

It has been made to appear to the Commission that during the period January 
1, 1941, to June 30, 1947, the Company has made net additions to its telephone 
plant and properties amounting to $4,962,780.02, and that during that period gross 
expenditures for new construction were approximately $7,448,000. The Company 
expects that such expenditures will continue at a high level for sometime. Not- 
withstanding the expenditures made to date, the Company still had on June 30, 
1947, approximately 11,350 applications for telephone service on hand, which it 
was unable to fill by reason of a shortage of the facilities necessary to render 
service. 

Expenditures in the construction program of the Company and for necessary 



Decisions and Adjustments of Complaints 99 

materials and supplies were temporarily financed, commencing in February, 1946, 
by short term bank loans. On February 25, 1947, the Company issued and sold, 
pursuant to authority granted by this Commission in its Order issued February 
17, 1947 (Docket No. 3920), three million dollars ($3,000,000) principal amount 
of Thirty Year 2^4% Debentures, due February 1, 1977. Proceeds from the is- 
sue and sale of these debentures were applied to the payment and discharge of 
short term bank loans, which at the time amounted to two million five hundred 
thousand dollars ($2,500,000), and the excess of such proceeds over the amount 
required to pay and discharge these bank loans was applied by the Company 
to meet further expenditures incurred in the construction program above de- 
scribed. In addition thereto, further moneys were required by the Company 
and new short term bank loans have been incurred as required from time to time. 
As of June 30, 1947, the amount of bank loans owing by the Company was $1,465,- 
000; as of July 31, 1947, the amount so owing was $1,765,000; and it is expected 
that by October 15, 1947, the requirements of the Company will necessitate 
additional borrowings which may increase its short term bank loans, then 
outstanding, to as much as, or more than, $2,125,000. 

The Company desires authority to issue and sell at this time 21,250 shares 
of its Common Capital Stock at not less than par value of one hundred dollars 
($100) per share, the proceeds from such sale to be applied to the payment 
and discharge of the then outstanding short term bank loans, and the excess 
of such proceeds (if any) to be used to meet further requirements of the con- 
struction program. Estimated expenses of issue and sale, including registration of 
the offering as required by law under the Federal Securities Act of 1933, as 
amended, are $13,506.25. Resolutions adopted by the Board of Directors of the 
Company on August 8, 1947, authorize the proposed issue of Common Capital 
Stock and set forth the terms and conditions under which the shares are to be 
offered for pro rata subscription at the par value of one hundred dollars ($100) 
per share to the holders of the outstanding 53,124 shares of Common Capital 
Stock of the Company, the offer to be made in the ratio of two new shares of 
Common Capital Stock for each outstanding five shares held of record. Under such 
offering the Company reserves the right to reoffer for sale at a price or prices, 
in no event less than one hundred dollars ($100) per share, such of the 21,250 
shares of Common Capital Stock as are not subscribed for by stockholders or 
their assigns in the exercise of warrants to be issued by the Company to the 
holders of the outstanding Common Capital Stock. 

It appears from an exhibit filed with the petition that the issue and sale 
by the Company of its Common Capital Stock as proposed, have been duly 
authorized by the Board of Directors as required by law. 

Upon consideration of the petition and exhibits filed therewith, the Commis- 
sion finds as a fact that the proposed issue and sale by the company of such 
21,250 shares of its Common Capital Stock at not less than par value therof will 
be compatible with the public interests, is necessary and appropriate for and 
consistent with the proper performance by the Company of its obligations to 
render service as a pubilc utility, will not impair the ability of the Company 
to perform that service, is reasonably necessary and appropriate for such service, 
and is for a legal object within the corporate purposes and powers of the 
Company. 



100 N. C. Utilities Commission 

Wherefore Carolina Telephone and Tel-egraph Company is hereby authorized 
to issue and sell at not less than par value of one hundred dollars ($100) per 
share a total of 21,250 shares of Common Capital Stock of the Company upon the 
terms and for the purpose set forth in the petition of the Company filed with 
this Commission. 

Nothing contained in this Order or in the findings of fact herein made shall 
be construed to imply any guarantee or obligation as to such Common Capital 
Stock on the part of the State of North Carolina or the North Carolina 
Utilities Commission. 

Dated: August 12, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack^ Chief Clerk 

Docket No. 4141 

APPLICATION OF THE CAROLINA TELEPHONE AND TELEGRAPH 

COMPANY TO PURCHASE AND ACQUIRE THE OPERATING 

RIGHTS OF THE ROCK RIDGE TELEPHONE COMPANY. 

Order 

In this case the Carolina Telephone and Telegraph Company is asking for the 
approval of this Commission to purchase and acquire in whole the operating 
rights of the Rock Ridge Telephone Company for a consideration of $5.00 for 
each magneto telephone instrument recovered from present installations of the 
Rock Ridge Telephone Company. The consummation of said agreement is 
conditioned upon the fact that the Carolina Telephone and Telegraph Company 
shall first provide adequate facilities necessary to serve the territory involved. 

The required rights of way for the proposed rural lines service to be furnished 
from the Wilson exchange of the Carolina Telephone and Telegraph Company 
have been procured by present users of the Rock Ridge service and prospective 
users for the new service. The Carolina Telephone and Telegraph Company 
further states that the engineering of facilities required to provide service for these 
customers has been completed and it is estimated that the construction of same 
will commence on or before November 1, 1947. 

Information on file in this office shows that the Rock Ridge Telephone Company 
has approximately twenty-nine subscribers. 

The Commission is of the opinion that said purchase and aquisition is within 
the law and is compatible with public interest, therefore 

It Is Ordered, that the same be, and it is hereby, approved. 

It Is Further Ordered, that this order shall constitute a Certificate of 



Decisions and Adjustments of Complaints 101 

Convenience and Necessity for the Carolina Telephone and Telegraph Company. 
This, the 24th day of October, 1947. 

Stanley Winborne, Chairman 



Fred C. Hunter^ Commissioner 
R. G. Johnson, Commissioner 



1;, 

Attest; 

Charles Z. Flack, Chief Clerk 

Docket No. 4222 

CAROLINA TELEPHONE AND TELEGRAPH COMPANY ORDER ON 

PETITION FOR AUTHORITY TO ISSUE AND SELL FOUR 

MILLION DOLLARS ($4,000,000) PRINCIPAL AMOUNT OF 

THIRTY YEAR 3^% DEBENTURES, DUE JULY 1, 1978, THE 

PROCEEDS FROM THE SALE OF SUCH DEBENTURES 

TO BE APPLIED TO THE RETIREMENT OF 

CERTAIN OUTSTANDING OBLIGATIONS 

AND TO OTHER PURPOSES AS STATED 

IN SAID PETITION 

Order 

This matter comes before the North Carolina Utilities Commission on the 
petition or application of Carolina Telephone and Telegraph Company (herein- 
after referred to as the Company) for authority to issue and sell Four Million 
Dollars ($4,000,000) principal amount of its Thirty Year ?>]/%% Debentures, due 
July 1, 1978, and to execute and deliver an Indenture of the Company sub- 
stantially in the form filed with the petition for the purpose of providing and de- 
claring the terms and conditions under which the Debentures are to be issued. 

It has been made to appear to the Commission that during the period be- 
tween January 1, 1943, and April 30, 1948. the Company has made net additions 
to its telephone plant and properties amounting to Six Million Nine Hundred 
Thirty-nine Thousand Seven Hundred and Ninety-six Dollars ($6,939,796). With 
increasing demands made upon the Company for telephone service, there is a 
large accumulation of unfilled demands for service which the Company desires 
to meet as efficiently and expeditiously as possible. Estimated proposed net 
additions to be made between May 1, 1948, and December 31, 1948, amount to 
One Million Four Hundred and Seventy-seven Thousand Dollars ($1,477,000). 
Expenditures in construction activities and for material and supplies have been fi- 
nanced by the Company in part by short term bank loans, which at May 31, 
1948, amounted to Two Million Eight Hundred and Fifty Thousand Dollars 
($2,850,000). The Company states that it now desires through the issue and sale of 
Debentures to fund at this time these bank loans and to provide additional cash 
in anticipation of expenditures which the Company expects it will incur later 
in 1948. 

The Company has filed with this Commission a form of Purchase Agreement 
under which the Company proposes to issue and sell Four Million Dollars 
($4,000,000) principal amount of Thirty Year 3^^% Debentures, due July 1, 



102 N. C. Utilities Commission 

1978, at a purchase price to provide net yield to the purchasers of 37r to ma^ 
turit}'. It appears that the Company has obtained commitments from the following 
purchasers for such Four Million Dollars ($4,000,000) principal amount of 
Debentures proposed to be issued, the Debentures to be sold at private sale and 
without any public offering: 

New York Life Insurance Company $1,500,000 

New York, N. Y. 

John Hancock Mutual Life Insurance Company 1.500,000 

Boston, Massachusetts 

Bankers Trust Company 550,000 

New York, N. Y. 

The Western and Southern Life Insurance Company 250,000 

Cincinnati, Ohio 

The Life Insurance Company of Virginia 200,000 

Richmond, Virginia 

The Company is proposing to issue such Four Million Dollars ($4,000,000) 
principal amount of Debentures under an Indenture to be dated as of July 1, 
1948, with Bankers Trust Company (New York) as Trustee. The Debentures 
will mature on July 1, 1978. will bear interest at the rate of 3%% per annum 
payable semi-annually, will be redeemable at the option of the company at the 
following percentages of the principal amount, namely: to and including July 1, 
1954, at 106.46%; thereafter to and including July 1, 1960. at 104.85%; there- 
after to and including July 1, 1966, at 103.23%; thereafter to and including July 
1. 1972. at 101.62%; thereafter to and including July 1. 1973. 100.68%;; there- 
after to and including July 1, 1974, 100.58%; thereafter to and including 
July 1, 1975, 100.47%; thereafter to and including July 1, 1976, 100.36%o; there- 
after to and including July 1, 1977, 100.24%; and thereafter to and including 
June 30, 1978, 100.12%, and will be issued on the further terms and conditions 
set forth in the proposed form of Indenture filed as "Exhibit B" with the petition. 

It appears from exhibits filed with the petition that the issue and sale by the 
Company of the Debentures, as proposed, have been authorized by the Board 
of Directors and Stockholders of the Company in the manner provided by law 
and as required by the Charter of the Company. 

Upon consideration of the petition and the exhibits attached thereto, the Com 
mission finds as a fact that the granting of the petition of the Company will 
be compatible with the public interest, is necessary, appropriate and consistent 
with the proper performance of the Company of its service to the public as a 
public utility, will not impair the Company's ability to perform that service, is 
necessary and reasonably appropriate for such purpose, and is within the corporate 
powers of the Company. 

Wherefore Carolina Telephone and Telegraph Company is hereby authorized 
to issue and sell at private sale, and without any public offering, Four Million 
Dollars ($4,000,000) principal amount of its Thirty Year 3^%> Debentures, due 
July 1, 1978, as proposed by the Company, and to execute and deliver its In- 



Decisions and Adjustments of Complaints • 10.3 

denture substantially in the form filed with the petition of the Company as 
Exhibit "B" thereto for the purpose of providing and declaring the terms and 
conditions under which the Debentures are to be issued. 

Nothing contained in this Order or in the findings of fact herein made shall 
be construed to imply any guarantee or obligation as to such Debentures on 
the part of the State of North Carolina or the North Carolina Utilities Com- 
mission. 

This 24th day of June, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest: 

Charles Z. Flack, Chief Clerk 

Docket No. 4431 

APPLICATION OF THE CAROLINA TELEPHONE AND TELEGRAPH 
COMPANY FOR AN INCREASE IN RURAL MULTI-PARTY RATES. 

Order 

APPEARANCES: 

For the Applicant : 

C, H. Leggett, Tarboro, North Carolina 

L. W. Hill, Tarboro, North Carolina ' 

J. F. Havens, Tarboro, North Carolina 

For the Protestants: 
l^^one 

This cause comes before the Commission on the application of the Carolina 
Telephone and Telegraph Company and was heard by the full Commission on 
November 5, 1948. The matter was properly advertised. No one appeared in 
protest. 

In this case the applicant requestes an increase in rural multi-party rates 
of $1.00 on business and 75 cents on residence. 

The uncontroverted testimony of the witness for the applicant was as follows : 

1. On August 31, 1948, the company was providing service to 68,265 com- 
pany-owned telephones. Of this number 5,620 had been gained during the pre- 
ceeding eight months ; during this same period salaries and wages paid out in- 
creased $116,710. 

2. In order to meet the demands made upon the applicant for service it has 
been necessary to increase the capital obligations of the company from 
$5,960,733 at the end of 1945 to $15,001,105 at the end of August, 1948. 

3. During 1946 the company undertook a rural program. Since that time 31 
rural projects to serve 865 customers have been completed at a cost of $379,000 
or $438 per telephone. 



104 . N. C. Utilities Commission 

4. As of August 31, 1948, the company's average investment per telephone was 
$231.44. 

5. On August 31, 1948, the company had on file 3200 applications for rural 
service. 

6. The requested increase is the minimum amount that will make it possible 
for the company to continue to provide additional rural service at the present 
cost. 

7. For the first eight months of 1948, the return on net investment was 
4.40 per cent ; under the requested increase the return would have been 4.73 per 
cent. 

8. It is estimated that the proposed increase will gross additional revenue of 
approximately $63,500 — $19,000 coming from business and $44,500 from residence. 

On May 19, 1947, the Commission lieard this company's application for an 
upward adjustment in rates and charges. The request on rural multi-party rates 
was denied at that time. It is general knowledge that labor and material costs 
liave risen considerably since that time. 

In view of the above testimony and facts and from other information avail- 
able to the Commission, the Commission finds that the company should be 
allowed an increase in rural multi-party rates of 75 cents on business and 50 
cents on residence on the basis that such increase is necessary, fair, and 
reasonable. 

Wherefore It Is Ordered that the Carolina Telephone and Telegraph Com- 
pany is hereby granted authority to place in effect on its rural multi-party serv- 
ice an increase of 75 cents on business and 50 cents on residence. 

It Is Furthered Ordered that the above approved increase shall become 
effective on billings on and after December 1, 1948. 

By Order Of The Commission. 

This the 30th day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4532 

APPLICATION OF THF CAROLINA MOUNTAIN TELEPHONE 

COMPANY OF ENKA. NORTH CAROLINA. TO BORROW $175,000.00 

TO BE SECURED BY A DEED OF TRUST, PLEDGING ALL OF 

ITS PHYSICAL ASSETS AS SECURITY THEREFOR. 

Order 
This application comes before the Commission on the Petition of the Caro- 



Decisioiss and Adjustments of Complaints lOS 

lina Mountain Telephone Company for authority to borrow the sum of $175,000.00, 
principal amount, and to issue its promissory installment note as evidence of 
said indebtedness and as security therefor to pledge by deed of trust or mortgage 
all of its physical assets. 

It appears from the Petition and exhibits thereto attached that the borrowing 
of such funds by the Petitioner is necessary in order to permit the company to 
complete an extension and improvement of its facilities whereby adequate and 
reasonable service may be provided for the public using its facilities and within its 
franchises. 

It further appears from said Petition and exhibits that said funds which Peti- 
tioner proposes to borrow will be used to defray certain open accounts and bank 
indebtedness heretofore expended in carrying out its improvement and extension 
program, and the balance will be used for the completion of said extension and 
improvement program. 

It further appears that the borrowing of said funds and the improvement 
of the facilities by the Petitioner are compatible with the public interest 
and are necessary and appropriate for and consistent with the proper perfor- 
mance by the Carolina Mountain Telephone Company of its service to the 
public as a utility and will not impair its ability to perform that service and 
as reasonably necessary and appropriate for that purpose. 

It Is, Therefore, Ordered by the Commission that Carolina Mountain Tele- 
phone Company be and it is hereby permitted, authorized and empowered : 

(a) To borrow the aggregate principal sum of $175,000.00, and as evidence 
thereof, to issue its negotiable promissory installment note, bearing interest 
at the rate of 4%% per annum, the proceeds of said note to be paid to the 
company at par of 100% less necessary legal expense obligated in con- 
nection therewith, and that Carolina Mountain Telephone Company be 
authorized and empowered to execute and deliver as security for the re- 
payment of said indebtedness, a deed of trust or mortgage and by the 
terms of which the said company will pledge all of its physical assets and 
substantially in accordance with all the terms and conditions in said note and 
deed of trust, a copy of which is attached as an exhibit to said Petition. 

(b) That the said Carolina Mountain Telephone Company use the proceeds 
of said loan, as heretofore authorized, for the purpose of repaying any and all 
outstanding indebtedness of said company, and the balance of said proceeds 
to be used for the purpose of expanding, improving and maintaining its tele- 
phone facilities throughout the system. 

It Is Further Ordered that, from time to time and within 60 days after 
the borrowing of all of said money, the company shall file with this Commission 
a certified report showing the receipt and disbursements of the proceeds de- 
rived from said loan, together with a list of all expenses incurred in connection 
therewith. 



106 N, C, Utilities Commission 

It Is Further Ordered that the authority herein granted shall be exercised 
within 90 days from the date of this Order. 



This the 5th day of December, 1947. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4255 

APPLICATION OF CAROLINA MOUNTAIN TELEPHONE COMPANY 
FOR AN ADJUSTMENT IN ITS GENERAL EXCHANGE RATES. 

Order 

APPEARANCES: 

For the Applicant ; 

Kester Walton, Jackson Building, Asheville. North Carolina. 

For the Protestants : 
None. 

In this matter the Carolina Mountain Telephone Company comes before the 
Commission requesting authority to adjust its general exchange rates at its 
various exchanges in amounts ranging from 25 cents to $1 per month. Proposed 
rates, indicating the requested adjustments, are shown in Exhibit I of the 
petition. 

The hearing was properly advertised, and no one appeared in protest. It 
is stated in "the application that the proposed rates would produce additional 
gross revenue of approximately $8,187 annually and net revenue, after State 
and Federal taxes, of $5,310. 

In support of the company's request, it is further stated in the application 
that, in view of increased costs of labor, materials, and supplies, an increase in 
rates is essential and necessary if the applicant is to furnish adequate and 
reasonable telephone facilities to the territories which are served by its franchise ; 
that wages paid to employees increased from $25,574.60 in 1944 to $52,948.v31 in 
1947; that, in order to meet the greatly increased demand for telephone service 
within its service areas, it has become necessary for the company to undertake 
a large improvement and expansion program, and for this purpose it has bor- 
rowed $175,000 under date of November 5, 1947; that this new construction, 
which is now under way, is being performed, and will continue to be performed, 
at higher cost levels ; that, in order to complete its improvement and expansion 
program, applicant will be forced to maintain its credit rating and repay 
the moneys which it has borrowed for this purpose ; that during the years of 
1946 and 1947 the applicant added to its plant account $95,800.43, which was 
utilized in increasing its facilities to meet the increased demand for its service ; 
that, based upon operations for 1947, the proposed rates will yield a net return 
of 4.93 per cent on gross investment. 



Dfxistons and Adjustments of Complaints 107 

The witness for the appHcant read the petition into the record and elaborated 
on the contents for the benefit of the Commission. 

From the foregoing facts and other available information, the Commission 
finds that there exists the need for additional net revenue if the applicant is to 
maintain a sound financial position and carry out its improvement and ex- 
pansion program at a minimum of cost; that, based on operations for 1947, 
the proposed rates would produce a net return of 5.7 per cent on net invest- 
ment ; that the proposed rates are comparable to those in effect at similar 
exchanges; and that the proposed rates are fair and reasonable and should 
be allowed. 

Wherefore, It Is Ordered That the proposed rates as specified in Exhibit 
I of the application be, and the same are hereby, authorized and approved. It 
is further ordered that the rates herein approved shall become effective on all 
billings on and after September 1, 1948. 

By Order of the Commission 

This 26th day of August, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4381 

SERVICE AGREEMENT BETWEEN CENTRAL TELEPHONE 

COMPANY AND TWO SUBSIDIARIES OF THE 

CENTRAL ELECTRIC AND GAS COMPANY 

Order 

In this case the Central Telephone Company comes before the Commission and 
requests the Commission's approval of service agreements made with two of the 
subsidiaries of the Central Electric and Gas Company, namely. The Bluefield 
Telephone Company and the Southeastern Telephone Company. 

In its application the Company states that all services under said agreement 
are to be rendered at cost, the allocations of which are set forth in the agree- 
ments. 

The Company in its application further states the Central Telephone Company 
is of the opinion that efficiency and economy will be enhanced in the operations 
covered under said agreements and that they will be of benefit to the Companies 
affected and that the public interest will be served thereby. 

The Commission is of the opinion that said agreements will be in the interest 
of efficiency and economy, that they are compatible with the public interest and 
should be approved, therefore 

It Is Ordered, That the agreements between the Central Telephone Company 



108 N. C. Uttmties Commission 

and the two subsidiaries of the Central Electric and Gas Company, namely, The 
Bluefield Telephone Company and The Southeastern Telephone Company, sub- 
mitted in this case, be and are hereby approved. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G, Johnson, Commissioner 



This, the 7th day of August, 1947. 



Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4127 



APPLICATION OF CENTRAL TELEPHONE COMPANY FOR 

AUTHORITY TO ISSUE AND SELL 5000 SHARES OF $2.50 

CUMULATIVE PREFERRED STOCK WITHOUT PAR VALUE 

BUT WITH STATED VALUE OF $50.00 PER SHARE. 

Order 

In this case the Central Telephone Company comes before the Commission and 
asks for authority to issue and sell 5000 additional shares of $2.50 cumulative 
preferred stock without par value but with a stated value of $50.00 per share. 

It is set forth in the application that the proceeds from the sale of said 
stock issued shall be applied to advances to subsidiaries or to reimburse the 
treasury of the company for advances thereto, or for the construction, extension, 
and improvement of the facilities of the company or for the improvement and 
maintenance of its service. 

It is also stated in said application that the issuance of said stock will bene- 
fit the public in that the financial structure of the company will be strengthened, 
thus putting the company in a better position to proceed with its program of 
construction, extension, and improvement of its facilities and service. 

The Commission is of the opinion that the said stock issue is for a lawful 
object, that it is compatible with the public interest, is necessary, appropriate for 
and consistent with the proper performance by the Central Telephone Company 
of its service to the public as a utility, will not impair its ability to perform 
such service and that the use of the proceeds of the securities to be sold is 
reasonably required for the purpose as stated, therefore 

It Is Ordered, that the Central Telephone Company is hereby granted authority 
to issue and sell 5000 shares of $2,50 cumulative preferred stock without par value 
but with stated value of $50.00 per share, the proceeds to be used for con- 
struction and improvements to its properties and for advances to its wholly- 
owned subsidiaries. 

It Is Further Ordered, that within thirty days after the sale of said stock issue 



Decisions and Adjustments of Complaints 109 

the Central Telephone Company shall file with this Commission a compre- 
hensive report of said sale. 

This the 19th. day of March, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter_, Commissioner 

R. G. Johnson, Commissioner i 

i ■ - ■■ 

Attest: 

Charles Z. Flack, Chief Clerk 
Docket No. 3937 

INCREASE IN THE EXCHANGE RATES OF THE CENTRAL 
TELEPHONE COMPANY AT ITS SEVERAL EXCHANGES. 

Order 
APPEARANCES : 
For Petitioner: 

L. D, Densmore, Charlottesville, Virginia ■ 

W. E. Sparger, Charlottesville, Virginia 

For Opposition: 

R. J. Randolph, Sparta, N. C. 

H. D. Quessenberry, West Jefferson, N. C. 

A. B. Hurt, Jefferson, N. C. 

H. Page AlcAuley, Candor, N. C. 

In this case the Central Telephone Company comes before the Commission 
and asks that it be permitted to increase its exchange rates at its several ex- 
changes in the State, due, the Company says, to wage increases and other 
operating expenses which, according to income statement for the first six months 
of 1947, gives a return of only 2.6 per cent on average investment. The Company 
also asks that it be permitted to put into effect billing in advance at its ex- 
changes at Asheboro, Leaksville, Mount Airy, Ramseur, and North Wilkesboro, 
in keeping with the Company's billing practice at its other exchanges. 

The application further states that during the year 1946 and the first six months 
of 1947, the Company made gross plant additions in the amount of $384,401.77, 
resulting in net plant additions amounting to $297,082.48. 

The application further states that in order to meet the present and future 
demands of its customers and to maintain efficient, adequate, and dependable 
service, petitioner's construction expenditures for the remainder of 1947 and 
future years must be as large or larger than during the period 1946 and the 
first six months of 1947 and at higher cost levels. 

In order to secure additional capital for needed expansion, the application 
states that the earnings of the Company must be sufficient to maintain an ad- 
equate capital credit. 



110 N. C. Utilities Commission 

The witness for petitioner corroborated the statements set forth above and 
other statements set forth in appHcation, 

The witness admitted that service in many cases was not what it should 
be, however, he stated that such was not due primarily to the Company but on 
account of the Company's inability to get equipment and material. 

A large delegation of subscribers from various exchanges of the Company 
was present. 

Witnesses from this delegation stated that the service at their respective ex- 
changes was poor and that they and other subscribers at their respective ex- 
changes were opposed to the granting of any increase in the exchange rates of 
the Company until improved service was given. 

In view of the financial statements submitted, the records in this office, and a 
review of the present exchange rates, it became apparent to the Commission that 
if the Company is to continue as a going concern, this Commission should grant 
an increase in the Company's exchange rates, however, in canvassing the rate in- 
creases requested by the Company the Commission revised the figures in certain 
cases to conform to the Commission's viewpoint. 

The estimated rate increases will raise the net income of the Company, on an 
annual basis, to $51,204.08, producing a 5.2% return on the basis of capital stock. 

In respect to the request of the Company for authority to put into effect ad- 
vance payments at Asheboro, Leaksville, Mount Airy, North Wilkesboro, and 
Ramseur, the Company is overlooking the fact that such authority is already 
provided in Section 5 of its General Exchange Tariff, however, as the Company 
has not been exercising this right, the Commission is of the opinion that it would 
be inadvisable at this time to make the proposed change. 

The Commission is mindful of the complaints made about service at the 
various exchanges of the petitioner, however, it is also advertant to the fact 
that it is difficult for the Central Telephone Company to get an adequate amount 
of material and equipment, a condition that not only confronts the petitioner but 
all other telephone and electric utilities. 

The expenditures made by the Company for the past 18 months is an earnest 
that the Company is putting forth an honest effort to meet an abnormally dif- 
ficult situation, therefore, rate increases will be provided in order which is to fol- 
low. 

In view of the foregoing, therefore 

It Is Ordered That on billings on and after December 15, 1947 the Central 
Telephone Company is hereby authorized and directed to put into effect the 
rates and charges set forth below : 

Rural 

Asheboro 1 Party 2 Party 4 Party 8 Party 10 Party 

Business $4.50 $3.75 $3.25 $3.00 $2.75 

Residence 2.90 2.40 2.00 2.25 2.00 



Decisions and Adjustments of Complaints 111 

Candor 1 Party 2 Party 4 Party 8 Party 10 Party 

Business $3.00 $2.50 $2.50 

Residence 2.25 1.90 1.50 1.75 

Dobson 

Business $3.75 $3.25 ■ ■ $2.75 

Residence $2.50 2.00 1.75 

EII<in 

Business $4.25 $3.75 $3.25 ■ $2.75 

Residence 2.90 2.40 2.00 2.00 

Leaksville 

Business $4.50 $3.75 $3.25 $3.00 

Residence 2.90 2.40 2.00 2.25 

Draper 

Business $6.50 $4.75 $3.60 $3.00 ■ 

Residence 5.00 3.25 2.35 2.25 

Mocksville 

Business $4.15 $3.75 ■ $2.50 

Residence 2.65 2.15 2.00 

Mount Airy 

Business $4.50 $3.75 $3.25 $3.00 — 

Residence 2.90 2.40 2.00 2.00 

Mt. Gilead 

Business $3.00 $2.75 — ■ — ~ $2.50 

Residence 2.25 1.90 1.50 2.00 

North Wilkesboro 

Business $4.25 $3.75 $3.25 • $2.75 

Residence 2.90 2.40 2.00 2.00 

Pilot Mountain 

Business $3.00 $2.50 ■ • ■ $2.75 

Residence 2.25 1.90 — - 2.00 

Ramseur 

Business $3.75 $3.25 ■ $2.75 

Residence 2.50 2.00 1.75 — — 2.00 

Franklinville 

Business $4.25 $3.75 $3.25 $2.50 

Residence 3.00 2.50 2.25 2.00 

Sparta 

Business $3.00 $2.50 $2.75 

Residence 2.25 1.25 2.00 

West End 

Business $3.75 $3.25 $2.25 

Residence - 2.75 2.25 2.00 2.00 



112 



N. C. Utilities Commission 



West Jefferson 1 Party 2 Party 4 Party 8 Party 10 Party 

Business $3.00 $2.00 $2.50 

Residence 2.25 1.50 1.75 

Jefferson 

Business $3.50 $3.00 $2.00 $2.50 

Residence 2.75 2.00 1.75 1.75 

The above rates are for hand set and all other type of instruments and 
all differentials are eliminated. 

EXTENSIONS 

Extensions (all exchanges) per month: Business $1.00 Residence 75c 

AUXILIARY LINES 

Auxiliary lines (one way service) j4 of regular individual line business 
rate. 

SERVICE STATIONS FARMER'S LINES 

Flat rate service at the rate of 75c for each station on circuit : Minimum 
$4.50 per month. 

Rural Multi-Party Mileage Charges, per month : 

to 2 miles from exchange No charge 

2 to 4 miles from exchange 25c 

4 to 6 miles from exchange 50c 

6 to 8 miles from exchange 75c 

Thereafter a charge of 25c for each zone of 2 miles or fraction 
thereof. 

It Is Further Ordered, That this cause be retained for a period of 15 months 
from this date; that the applicant file with this Commission not later than 
August 1, 1948, complete financial reports and reports on service improvements 
at the various exchanges for the first six months of 1948; and not later than 
February 1, 1949 for last six months of 1948 and for 1948 as a whole. 

This 2nd. day of December, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Charles Z. Flack, Chief Clerk 
Docket No. 4158 



Decisions and Adjustments of Complaints 113 

APPLICATION OF CENTRAL TELEPHONE COMPANY FOR 
AUTHORITY TO ISSUE AND SELL $800,000 PRINCIPAL AMOUNT 
OF FIRST MORTGAGE AND COLLATERAL LIEN SINKING FUND 
BONDS, SERIES B, 3^%, DATED JUNE 1, 1947, DUE JUNE 1, 1974, 
AND 65,000 SHARES OF COMMON STOCK OF THE PAR VALUE OF 

$10 PER SHARE 

Order 

In this case the Central Telephone Company comes before the Commission 
and asks for authority to issue and sell $800,000 principal amount of First 
Mortgage and Collateral Lien Sinking Fund Bonds, Series B. 3%%, dated 
June 1, 1947, due June 1, 1974, and 65,000 shares of Common Stock of the 
par value of $10 per share. 

The Company sets forth in its application that the funds to be derived from 
the issue and sale of bonds and stock are to be used for the improvement of 
its property and service and for stock transactions between the Company 
and its subsidiaries. 

It is stated that the proposals covered by application will be of benefit 
to the public in that the Company's property will be enhanced and the 
financial structure of the Company strengthened. 

It is further set forth that the said proposals are compatible with the 
public interest, are necessary for and consistent with the proper performance 
by the Central Telephone Company of its service to the public as a utility 
and will not impair its ability to perform such service. 

In reviewing and considering this application, the Commission is of the 
opinion that the proposals of the petitioner are compatible with the public 
interest, are necessary for and consistent with the proper performance of 
the Central Telephone Company of its service to the public as a utility and 
will not impair its ability to perform such service, therefore 

It Is Ordered, That: 

(a) Central Telephone Company is hereby authorized, empowered and 
permitted to issue and sell, for cash, to institutional investors, at not less 
than 105% of the principal amount thereof plus accrued interest, $800,000 
principal amount of its First Mortgage and Collateral Lien Sinking Fund 
Bonds, Series B, 3%%, dated June 1, 1947, due June 1, 1974, such bonds 
to be issued under the provisions of the Indenture of Central Telephone 
Company made a part of the record in Docket No. 3140, as amended by the 
Supplemental Indenture made a part of the record in Docket No. 3820, and 
as further amended by the Second Supplemental Indenture hereinafter referred 
to, and that the proceeds derived from such issue of bonds be used to 
reimburse Central Telephone Company for the construction, extension and 
improvement of its facilities and service. 

(b) Central Telephone Company is hereby authorized, empowered and 
permitted to execute and deliver its Second Supplemental Indenture, dated 
as of June 1, 1947, substantially in the form filed in this proceeding, for the 



114 N. C. Utilities Commission 

purpose of stating the terms and conditions of its Series B Bonds and for 
the other purposes stated in said Second Supplemental Indenture, which 
is hereby approved and made a part of the record in this proceeding. 

(c) Central Telephone Company is hereby authorized, empowered and 
permitted to issue and sell 65,000 additional shares of its Common Stock 
of the par value of $10 per share to Central Electric and Gas Company 
at a price of $10 per share, or $650,000 in cash, and that the proceeds 
derived from such issue be applied for the purposes set forth in the application. 

This 6th. day of October, 1947. 

Stanley Win borne. Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest ; 

Chas. Z. Flack, Chief Clerk 

Docket No. 4169 

APPLICATION OF THE CENTRAL TELEPHONE COMPANY FOR 

AUTHORITY TO ISSUE AND SELL $1,500,000.00, PRINCIPAL 
AMOUNT OF 4y2 PER CENT SINKING FUND DEBENTURES, DUE 

MAY 1, 1963. 

Order 

In this case the Central Telephone Company comes before the Commission 
and asks for authority to issue and sell $1,500,000.00 principal amount of its 
AYz per cent Sinking Fund Debentures. It is set forth in the application that 
the proceeds of the sale of the debentures are to be used by the Company for 
the purpose of: 

a. The construction, extension, replacement and improvement of its facilities 
and service ; 

b. Reimbursing its treasury for the construction, extension, replacement 
and improvement of its facilities and services ; 

c. Making investments in advances to subsidiary companies, and 

d. For other corporate purposes. 

It appearing to the Commission that the issuance of said debentures for 
the purposes set forth in application is compatible with the public interest, 
is necessary, appropriate for and consistent with the proper performance by 
the Central Telephone Company of its service to the public as a utility, and 
that it will not impair the ability of said Company to perform such service 
as a utility, and that the use of the proceeds to be derived from the sale 
of said securities is reasonably required for the purposes set forth, 

Therefore, It Is Ordered That the Central Telephone Company is hereby 
authorized, empowered and permitted to issue and sell for cash to the 
Massachusetts Mutual Life Insurance Company at not less than 100% of the 



Decisions and Adjustments of Complaints 115 

principal amount thereof, plus accrued interest, $1,500,000.00, principal amount 
of its 4H% Sinking Fund debentures dated May 1, 1948, due May 1, 1963, 
such debentures to be issued under the provisions of the indenture of the 
Central Telephone Company made a part of the record herein, the proceeds 
from the sale of said securities to be used as set forth in application. 

It Is Further Ordered That the Central Telephone Company is hereby 
authorized, empowered and permitted to deliver its debentures dated as of 
May 1, 1948, substantially in form filed in this proceeding. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This the 8th day of April, 1948. 



Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4369 



THE APPLICATION OF THE CENTRAL TELEPHONE COMPANY 

FOR AN INCREASE IN THE EXCHANGE RATES AT ITS 

YADKINVILLE EXCHANGE 

. Order 

In this case the Central Telephone Company is asking this Commission 
for authority to make certain increases in its exchange rates at its Yadkinville 
exchange. The proposed rates are as follows : 

Two-Party 
Line Station 

$3.00 
2.00 

In the application it is shown that early in 1947 one hundred sixty- 
three subscribers, representing 98 and 2/10 percent of all authorized subscriber 
signatures, petitioned said applicant for modern automatic dial service in 
lieu of the then existing magneto service and agreed to the above rates 
which, it is estimated, will gross the Company an additional $1,250.00 annually, 
that dial equipment is now being installed and it is hopeful that said 
equipment can be cut over around July 1, 1948, that this conversion to dial 
will cost approximately $50,000.00, that in anticipation of this conversion 
Yadkinville was excluded from the Company's application for a general rate 
increase covered in Commission's Docket 4158. In view of the foregoing and 
in view of other data available to the Commission, it is apparent to the 
Commission that the requested rates are both reasonable and proper and should 
be granted, therefore 

It Is Ordered That the Central Telephone Company is hereby authorized to 
charge the following rates at its Yadkinville exchange on and after the date 
of complete conversion to automatic dial telephone service : 





Individual 




Line Station 


Business 


$3.50 ' 


Residence 


2.50 



116 N. C. Utilities Commission 

Two -Party 
Line Station 
$3.00 
2.00 

It Is Further Ordered That the Central Telephone Company shall report 
to this Commission the date on which said conversion is made. 





Individual 




Line Station 


Business 


$3.50 


Residence 


2.50 



This 17th day of June, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
Attest : 

Charles Z. Flack, Chief Clerk 
Docket 4419 

AYER WHITLEY, ET ALS, PETITIONERS 

V 

CENTRAL CAROLINA TELEPHONE COMPANY AND SOUTHERN 

BELL TELEPHONE AND TELEGRAPH COMPANY, RESPONDENTS. 

Order 

APPEARANCES : 

For the Petitioners: 

Paul R. Ervin, Charlotte, North Carolina. 
Francis H. Fairley, Charlotte, North Carolina. 

For the Respondents : 

Wade Barber, Pittsboro, North Carolina, for Central Carolina Telephone 
Company. 

E. H. Wasson, Charlotte, North Carolina, for Southern Bell Telephone 
aand Telegraph Company. 

Hunter, Commissioner: This cause came on for hearing before a member of 
the Commission in Charlotte on December 5, 1946, and before the full Commis- 
sion on th£ record and argument of counsel in Raleigh on May 6, 1947. The 
cause arises upon the petition of twelve subscribers and some seventy potential 
subscribers of the Central Carolina Telephone Company, all of whom reside in the 
Mint Hill section of Mecklenburg County, which section is served by said com- 
pany through its Matthews telephone exchange. It is alleged in the petition, in 
substance, that the telephone facilities of said company are old, inadequate 
to meet the needs of the community, often out of order, and that repeated com- 
plaints to the company have not resulted in any improvement of the telephone 
equipment or of the service rendered. The petitioners seek the aid of the Com- 
mission (1) in vacating the rights of said telephone company to further serve the 
Mint Hill community and (2) in requiring the Southern Bell Telephone and 
Telegraph Company to extend its line into and serve said community. 



Dfxistons and Adjustments of Complaints 117 

The Central Carolina Telephone Company filed answer to the petition, in which 
it alleges, in substance, that it is anxious to furnish telephone service to all parties 
in the community who desire the same as soon as physical facilities are available; 
that it purchased said telephone properties in 1941 with the intention of re- 
placing the same with modern equipment and facilities and to furnish the com- 
munity involved with a modern telephone system, but that the war intervened 
and it was impossible to obtain poles, wire, and other telephone equipment, and 
that the same has not since become available except in very meager quanitites. 
It further alleges a misjoinder of actions and that the petitioners seek to take its 
property without due process of law and challenges the jurisdiction of the 
Commission to grant the relief asked for by the petition. 

Subsequent to the filing of the petition and the answer of Central Carolina 
Telephone Company, the Southern Bell Telephone and Telegraph Company was 
made a party. It filed answer to the petition, alleging, in substance, that it has 
never professed to furnish telephone service in the Mint Hill community and has 
no facilities in that locality. It further alleges that, due to the existing scarcity of 
telephone equipment and materials, it is unable to supply the demand for telephone 
service in the territory it serves. 

Testimony For Petitioners 

Carl McEwen, the first witness and one of the petitioners, testified in sub- 
stance as follows: 

I reside at Mint Hill and am engaged in the general merchandise and funeral 
business, with connections with cotton gin, merchandise, and clothing business. 
Mint Hill is not very large and is not incorporated. It probably reaches two 
miles but serves a large area from nine to ten miles, and there is much business 
there. We have a hosiery mill which employs about 50, a chenille plant that em- 
ploys only a few, a wholesale soap business, excelsior plant that employs five or 
six, and four general stores, in addition to men's and women's ready-to-wear 
clothing. There is a funeral home there that serves a radius of ten or twelve 
miles, one church, and a school. The first telephone was put in in 1913 or 1914, 
and we have no improvement over that system now. Then you could call your 
neighbors because they had telephones too, but now there are only twelve or 
thirteen phones in use probably 75 to 80 per cent of the time. It takes five to 
fifteen minutes to get the operator. You ring a long time and there is just no 
service. The phones are of the coffee-mill type. The service is rendered through 
the Matthews exchange. Ninety-five per cent of my business is long distance be- 
cause I have a business in Charlotte, and many a night I have tried to call 
Charlotte and could not and have had to come up here myself to call an am- 
bulance or a hearse to pick up a body. The neighbors have come to call doctors 
and are probably not able to get the operator and have to make a trip to Mat- 
thews or Charlotte to find a doctor. I have requested the telephone company to 
improve the service. This company took over the business about 1941 from 
the McAlpine Telephone Company. There is certainly no improvement, and it 
is worse in that some of the neighbors have gotten disgusted and took their 
telephones out. After we get the connection, we get very good service. The 
system is worn out. Yesterday morning I tried to call Charlotte, and the bell 
wouldn't ring. It was just out of order. It is very often like that. The operator is 



118 N. C. Utilities Commission 

a very good operator. If you make a complaint, a man will come around in a day 
or two or three and look at the trouble. The people of the community will be 
satisfied if there were constructed and maintained through the Matthews ex- 
change modern telephone service serving the Mint Hill community with dial tele- 
phones. 

Ten other witnesses were examined and testified in support of the petition, 
whose testimony was mostly cumulative and to the general effect that telephone 
service in the Mint Hill section is most unsatisfactory. 

Testimony For Respondents 

George M. Thompson, general manager of Central Carolina Telephone Com- 
pany, was the only witness for respondents. He testified in substance as follows: 

Central Carolina Telephone Company acquired the Matthews- Mint Hill 
telephone properties in September, 1941. At that time it was in bad condition. Our 
long range program was to completely rebuild the entire property and convert to 
dial. The Matthews exchange is about seven miles from the Mint Hill community. 
At the time the property was acquired, the poles had rotted out entirely, poles 
were down, and the wire was badly deteriorated. It was our plan to junk the 
pole lines and exchange office or switchboard and replace the same with a dial 
system. These plans could not be carried out because the necessary equipment was 
immediately frozen and could not be obtained. Conditions are very little different 
now. We have recently purchased around thirty-five or forty coils of wire and 
have ordered other equipment. We have tried to buy poles ; in fact, we have called 
Taylor-Crawford Company in Spartanburg and they wouldn't even talk to us 
about an order. As stated, our ultimate plans are to convert to dial, but it is al- 
most impossible to get dial equipment. Our immediate plans are to completely re- 
build the exchange and convert to common battery and replace every phone. 
Common battery is not the coffee-mill type of phone. You simply lift the receiver. 
You do not turn a coffee-mill crank. When we can secure dial equipment, we will 
then convert to dial, which will only require a change of phones, which may be 
done in a few minutes. The equipment used will be modern telephone equipment 
such as that used by Southern Bell and other modern telephone systems. The dial 
equipment is not now available, but the phones we propose to use in the common 
battery system are available. The only bottle-neck now is obtaining new poles and 
wire. 

Findings Of Facts 

1. That the territory served by the Southern Bell Telephone and Telegraph 
Company is contiguous to but does not include the territory involved in this 
proceeding and said company has not and does not profess to serve the same. 

2. That the Central Carolina Telephone Company is a public utility and as 
such is engaged in furnishing telephone service to the public in the Matthews- 
Mint Hill section of Mecklenburg County under a certificate of public convenience 
and necessity issued by order of the Commission in Docket No. 2403, of which the 
following is a copy: 

This cause comes before this Commission on the petition of the McAlpine 
Telephone Company through its President, H. R. Cook, to sell its physical 
properties at its exchanges at Matthews and Waxhaw to the Central Caro- 



'^ Decisions and Adjustments of Complaints 119 

Una Telephone Company on grounds of public convenience and necessity, 
Chapter 455, Public Laws of North Carolina, 1931. 

The said exchanges at Matthews and Waxhaw are small properties having 
less than 100 subscribers each and it is represented that the sale as proposed 
will be in the interest of public convenience and necessity and be of benefit 
to present and prospective subscribers and to the advantage of the general 
public. 

H. R. Cook, President and General Manager of the said McAlpine Tele- 
phone Company, and R. S. DuRant, Vice-President and General Manager of 
the Central Carolina Telephone Company, orally corroborated data set 
forth in papers and documents filed with the petition. 

The Commission being convinced, from the representations submitted, that 
the sale is necessary for the improvement of the telephone service at the 
said two exchanges and in the interest of public convenience and necessity it 
is, therefore, 

Ordered, that the McAlpine Telephone Compony is hereby granted 
authority, on the grounds of public convenince and necessity, to sell its phy- 
sical properties at its exchanges at Matthews and Waxhaw to the Central 
Carolina Telephone Company and that when said sale is effected the Central 
Carolina Telephone Company shall take charge of the said properties at the 
Matthews and Waxhaw exchanges and provide adequate telephone service. It 
is 

Further Ordered, that this order constitutes a certificate of public con- 
venience and necessity in this case. 

This the 24th day of September, 1941, 

3, That the physical equipment and facilities used and the telephone service 
rendered by Cetitral Carolina Telephone Company under said certificate in the 
Matthews-Mint Hill community are below the standards required, and said equip- 
ment, facilities, and services are inadequate to meet the reasonable public de- 
mands and needs in said community. 

4. That the failure of said respondent to provide reasonably efficient and ade- 
quate telephone service in the area it claims and professes to serve under its 
certificate is retarding the growth and development of said section. 

Conclusions 

That the Commission has ample power to revoke the certificate of public con- 
venience and necessity issued to said Central Carolina Telephone Company for 
failure to provide reasonable telephone service under prevailing conditions, and 
it is the duty of the Commission in the situation presented to require adequate 
telephone equipment and facilities and adequate telephone service in the territory 
involved in this proceeding as a condition to the continuation of a certificate of 
public convenience and necessity now held by said respondent. 

It Is, Therefore, Ordered : 

1. That the respondent, Central Carolina Telephone Company, prepare and file 



120 N. C. Utilities Commission 

with the Commission in writing on or before the first day of November, 1947, 
a detailed statement of any improvements it is prepared to make and proposes to 
make in the physical property of the Matthews telephone exchange, including 
facilities at the exchange office, rehabilitation of lines, extension of lines, installa- 
tion of phones, type of phones, probable time required and probable cost involved, 
and a list of the equipment now on hand or available for such improvements. 

2. That this cause be retained for further orders upon receipt of the information 
herein required. 

By order of the Commission. 

This 13th day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest ; 

Charles Z. Flack, Chief Clerk 

Docket No 3708 

CENTRAL CAROLINA TELEPHONE COMPANY, JOHN E. CLINE, 
PRESIDENT, SOUTHERN PINES, N. C. 

Order 

TO: CENTRAL CAROLINA TELEPHONE CO., JOHN E. CLINE, 
FRES., SOUTHERN PINES, N. C.\ 

You are hereby directed and required to appear before the North Carolina 
Utilities Commission on Wednesday, January 21, 1948, at 10:00 a. m., to answer 
charges of failure on your part to provide adequate and sufficient telephone 
service at the following exchanges : Angier, Ansonville, Bonlee, Carthage, Fuquay- 
Varina, Gibsonville, Kernersville. Marshville, Matthews, Norwood, Pinehurst, 
Pittsboro, Robbins, Siler City, Southern Pines, Summerfield, Vass, Waxhaw. 
This notice given under Section 62-74 of General Statutes. 

It Is, Therefore, Ordered that Central Carolina Telephone Company, John E. 
Cline, President, Southern Pines, N. C, be, and it is hereby required to appear 
before the North Carolina Utilities Commission in the Hearing Room located in 
the State Library Building, Raleigh, N. C at 10:00 a. m. on the 21st day of 
January, 1948, to show cause, if any it has, why it should be permitted to 
continue the telephone service that is now being performed from the Angier, 
Ansonville, Bonlee, Carthage, Fuquay-Varina, Gibsonville, Kernersville, Marsh- 
ville, Matthews, Norwood, Pinehurst, Pittsboro, Robbins, Siler City, Southern 
Pines, Summerfield, Vass, and Waxhaw Exchanges. 

By Order Of The Commission, 

This the 13th day of January, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4288 



1 



^ 



Decisions and Adjustments of Complaints 121 



AYER WHITLEY, ET ALS, PETITIONERS 



V. 

CENTRAL CAROLINA TELEPHONE COMPANY, RESPONDENTS. 

Order 
APPEARANCES: 

For the Petitioners : 

McDougle, Ervin, Fairley and Horack, Charlotte, North Carolina 

For the Respondent : 

Wade Barber, Pittsboro, North Carolina 

Hunter, Commissoner : The proceedings in the above docket numbers involve 
the revocation of the certificate of pubHc convenience and necessity issued by the 
Commission to the respondent. Central Carolina Telephone Company, authorizing 
said respondent to provide telephone service in the Mint Hill section of Mecklen- 
burg County. Reference is made to the Commission's findings and order in 
Docket No. 3708, dated September 13, 1947, a copy of which is hereto attached. 
Reference is also made to the report of respondent, dated October 30, 1947, made 
and filed with the Commission in response to said order in Docket No. 3708, 
a copy of which report is hereto attached. Reference is further made to the Com- 
mission's order in Docket No. 4288, dated January 13, 1948, a copy of which is 
hereto attached. 

The section known as Mint Hill is a rural community, approximately three miles 
wide and seven miles long. Within this area are approximately three hundred fifty 
dwellings, thirty-seven business establishments, seven churches and two schools. 
Telephone service in this area is provided through the Matthews exchange which 
has a total of ninety-six telephones, of which eleven are located in the Mint Hill 
community. The south end of said Mint Hill community is about three miles from 
the town of Matthews, the location of the exchange ; and the north end of said 
community is about ten miles from Matthews. Matthews is about eleven miles from 
Charlotte, and the center of the Mint Hill community is about the same distance 
from Charlotte. 

In response to the citation issued in Docket No. 4288, the respondent appeared 
before the Commission in Raleigh on January 28 and 29th, 1948. Its General 
Manager, George Thompson, and its Executive \"ice-President, John E. Cline, 
testified in substance that no additional facilities or equipment have been in- 
stalled to provide better service in the Mint Hill section since the proceedings 
in Docket No. 3708 were instituted in September 1946, but that plans have been 
made for an expenditure of approximately $40,000 in modernizing the Mat- 
thews exchange ; that these plans include the installation of a dial telephone sys- 
tem throughout the territory served through the Matthews exchange with circuits 
to adequately serve the Mint Hill community ; that a suitable building has been 
leased in Matthews to house the dial equipment, and that the dial equipment has 
been ordered ; that delivery of this equipment is expected within the next four 
months, and that other materials such as wire, cable, hardware and poles are now 
in stock for this project. 



122 N. C. Utilities Commission 

It appears from the testimony that the Matthews-Mint Hill project is a part of 
a general plan to rehabilitate the respondent's telephone property in North 
Carolina, which plan includes expenditures at its various exchanges in North 
Carolina as follows : 

Angier $22,000 Bonlee $ 2,500 



Ansonville 


2,500 


Summerfield 


15,000 


Carthage 


52,500 


Waxhaw 


25,000 


Fuquay-Varina 


41,000 


Southern Pines 


15,000 


Gibsonville 


10,000 


Pinehurst 


10,000 


Matthews-Mint Hill 


40,000 


Kernersville 


12,000 


Norwood 


15,000 


Vass 


None 


Pittsboro 


20,000 


Marshville 


10,000 


Robbins 


37,000 


Siler City 


48,000 



A delegation of citizens from the Mint Hill community appeared at said hearing 
in Raleigh on January 28, 1948. They offered no testimony, but through their 
attorney, Mr. Paul R. Ervin, reiterated their contentions and wishes in the 
matter. The following excerpts form statements made by Mr. Ervin during the 
course of the hearing express, as the Commission understands, the wishes and feel- 
ing of the Mint Hill citizens in the matter here involved. 

"Mint Hill is kind of an area to itself. It is some little distance from the town 
of Matthews and at present is being served by the Matthews-Mint Hill exchange. 
The people in Mint Hill have been up in arms about this matter for two or 
three years, as this Commission well knows because we have been down here 
frequently formally and informally. Sometime ago, a hearing was held on the 
matter before the Commission ; and at that time, a suggestion was made that some 
negotiations be undertaken with reference to the subscribers themselves taking 
over the facilities witli the ultimate end in view of having Southern Bell to take 
it over." 

"Now, I represent both the Matthews element and the Mint Hill element. 
As far as the Mint Hill element is concerned, the Southern Bell Telephone 
system now comes within two miles of the Mint Hill area. There are a large 
number of businesses and residences which have been erected within the Mint 
Hill area within the last few months who are desperately anxious for telephone 
service, but they are not going to take the service which is now available." 

"If the Central Carolina will relinquish that end of the exchange for the time 
being, we will be content on that ;) ... ." 

Conclusions 

The Commission is of the opinion and finds from the testimony, supported by 
its own knowledge of conditions existing in the Mint Hill community: 

1. That reasonable adequate telephone service has not been provided the Mint 
Hill community at any time since the respondent obtained the exchange in 
question in 1941 and that no substantial improvements have been made in the 
service since that date. 

2. That tiie growth and development of said community is being unnecessarily 



Decisions and Adjustments of Complaints 123 

and seriously retarded for want of reasonably adequate and efficient telephone 
service. 

3. That the rehabilitation program of the respondent at its eighteen exchanges 
in North Carolina offers no reasonable assurance that the program will be com 
pleted for a number of years, and it cannot be assumed that the Mint Hill 
community will receive preferential treatment. 

4. That the geographical location of said community with respect to Matthews 
and Charlotte and the close community of interest between Mint Hill and Char- 
lotte make it improbable that telephone service through the Matthews exchange 
will be satisfactory in the future. 

5. That the tangible telephone property of respondent in said community is of 
little value to the respondent or to others for telephone purposes in any modern 
telephone system. 

6. That the respondent's obligations at its other exchanges in North Carolina 
are such that its best interest and the best interest of the Mint Hill community 
Avill be served by relieving said respondent of its obligations with respect to said 
community, whose citizens desire to work out their own telephone problems. 

It Is, Therefore, Ordered: 

1. That to the extent that the certificate of public convenience and necessity 
issued by the Commission to the respondent. Central Carolina Telephone Company, 
includes the Mint Hill community, that is to say, the area in Mecklenburg County 
north and east of Mecklenburg County Highway No. 71 and south of McAlpine 
Creek, be and the same is hereby revoked effective on and after the first day 
of May, 1948. 

2. That the respondent shall have the right at any time within thirty days after 
May 1, 1948, to sell or remove all phones, wire, poles, or other telephone property 
owned by it in said area described in Paragraph One hereof. 

3. That this order be served on respondent. Central Carolina Telephone Com- 
pany, by mailing a copy thereof to its Executive Vice-President, John E. Cline, 
by registered mail, addressed to its home office at Southern Pines, North 
Carolina. 

4. That this cause shall be retained for such other orders as conditions may 
require, but the findings and order herein shall not be construed as relating in any 
manner to the other matters involved in Docket No. 4288. 

By Order Of The Commission. 

This 19th day of February, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chie^ Clerk 

Docket No. 3708 & 4288 



124 - N. C. Utilities Commission 

BEFORE THE NORTH CAROLINA UTILITIES COMMISSION 

IN THE MATTER OF 

AYER WHITLEY, ET ALS, PETITIONERS 

V 

CENTRAL CAROLINA TELEPHONE COMPANY AND SOUTHERN 
BELL TELEPHONE AND TELEGRAPH COMPANY, RESPONDENTS. 

Order Allowing Withdrawal Of Exceptions 

The respondent, Central Carolina Telephone Company, on March 1. 1948, filed 
exceptions as appear of record, to the findings and order made by the Commission 
in this case, dated February 19, 1948; and thereafter, John E. Cline, Executive 
Vice President, and Wade Barber, Attorney for respondent, advised the Com- 
mission verbally that said respondent desired to withdraw said exceptions without 
prejudice to its rights in other matters involved in Docket No, 4288. 

It Is Therefore. Ordered that said exceptions filed by the respondent, dated 
March 1, 1948, be withdrawn, vacated, and dismissed. 

By Order Of The Commission. 

This 6th day of April, 1948. 

Stanley Winborne. Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest ; 

Charles Z. Flack, Chief Clerk 

Docket No. 3708 

CITIZENS TELEPHONE COMPANY, INC, BREVARD, N. C. 

Order 

TO: CITIZENS TELEPHONE COMPANY, INC., BREVARD, N. C: 

You are hereby directed and required to appear before the North Carolina 
Utilities Commission on Tuesday, December 9, 1947, at ten o'clock a. m., to answer 
charges of failure on your part to provide adequate and sufficient telephone 
service. This notice given under Section 62-74 General Statutes. 

It Is, Therefore, Ordered that Citizens Telephone Company, Inc., be, and it is 
hereby, required to appear before the North Carolina L^tilities Commission in the 
Hearing Room located in the State Library Building, Raleigh, N. C, at ten 
o'clock a. m., on the 9th day of December, 1947, to show cause, if any it has, 
why it should be permitted to continue the telephone service as now being per- 
formed from the Brevard exchange. 

By Order Of The Commission. 

This the 2nd day of December, 1947, 

Charles Z. Flack, Chief Clerk 
Docket No. 4190 



r 



Decisions and Adjustments of Complaints 125 

THE CITIZENS TELEPHONE COMPANY FURNISHING ADEQUATE 
SERVICE AT ITS BREVARD EXCHANGE. 

Order 

Pursuant to a show cause order issued on December 2, 1947, the Citizens Tele- 
phone Company (hereinafter referred to as Company or Respondent) appeared 
before the Commission on December 12, 1947, to show cause, if any it has, why 
it should be permitted to continue the telephone service as now being performed 
from the Brevard exchange. The cause was heard by Commissioners Winborne 
and Johnson. 

The Company contends that: 

1. The management did not know the operators were being paid for an hours 
service which was not being performed, (lunch hour) 

2. Service has been improving since the first of December and the Company 
has written statements to that effect. 

3. When an order was issued to the effect that operators were to be paid 
for actual time worked, the operators did not ask for an increase in hourly 

pay but walked out leaving the Telephone Company without any day 
operators. 

The testimony of Charles Pickelsimer, Treasurer and Manager of the Com- 
pany, shows that he has very little knowledge of the telephone business and that 
he has other business interests which require a large part of his time. 

Upon cross examination, Mr. J. H. Crisp testified that he is maintenance man 
for the Company, that he has been with the Company between 8 and 9 years, 
that he has had experience with dial equipment, that the service at this time is on 
a level as high, or higher, than it has been at any time since he has been with the 
Company, that the present operators appear to have been well trained and are 
giving equal service to all subscribers, that the present equipment when properly 
operated should provide adequate and sufficient service. 

Mr. R. L. Dunn testified that he has been assistant manager of the Company 
since last February and upon cross examination states that he believes that it is 
necessary for a man to be in the telephone business at least five years before he 
can be classified as a good telephone man. 

In giving the position of the intervenors, Brandon P. Hodges, Counsel for the 
Ecusta Paper Corporation, states that the Respondent has wholly failed to meet 
its responsibilities and that there does not seem to be a capacity to plan and carry 
out these responsibilities. 

Witnesses for intervenors testified in general that service is unsatisfactory. 

It appears to the Commission from the foregoing testimony of witnesses for the 
Respondent that the Respondent at this time has in its employment only one man 
with any technical knowledge of the telephone business. This man, Mr. J. H. Crisp, 
has since been fired by the Company. In view of this and in view of the fact 
that this cause is such that the Commission desired first-hand information in 



126 N. C. Utilities Commission 

order to complete the facts in the case; the Commission employed a technically 
trained engineer with years of experience to make a plant and service survey 
of the Citizens Telephone Company. This survey was commenced on March 8, 1948 
and completed on March 13, 1948, The engineer made a detailed report to the 
Commission in which there were set forth certain recommended changes which 
he felt, that if made in the plant and plant records of the Company, would result 
in much improved service. These recommendations are attached as Exhibit 1 and 
made a part of this record. 

The Commission finds from the full evidence in the case that the telephone 
subscribers of the Citizens Telephone Company are not receiving adequate 
telephone service and that the plant, if properly maintained and operated, is 
capable of giving adequate service. The Commission is of the opinion that these 
recommended changes should be made. The Respondent has agreed to make 
said changes. 

It Is, Therefore, Ordered That the Citizens Telephone Company carry out 
in full the recommendations contained in Exhibit I hereto attached and made 
a part of this order. 

It Is Further Ordered That the Citizens Telephone Company make a progress 
report thirty days from date of this order and every tfiirty days thereafter until 
the Commission is satisfied that proper service is being rendered to the subscribers. 

This 23rd day of April, 1948. 

Stanley Winborne. Chairman 
Fred C. Hunter, Commissioner 
R, G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4190 

EXHIBIT I 

After having made a thorough study of the report made on the Citizens Tele- 
phone Company to this Commission by a competent engineer, the Commission is of 
the opinion that the following changes should be made in order to improve the 
service : 

1. In order to care for the estimated local and toll requirements, it is recom- 
mended that local position No. 6 be added and line equipments installed 
to provide a total of 800 subscriber line terminals and multiple. 

2. That position No. 1 be fully equipped as a toll position, wiring for which is 
already installed, and equipped for 6 toll cords is also available. Multiple 
0-99 and 400-499 should be installed in panel T O. 

3. That the magneto multiple in panel T-3, Position 2, should be lowered to 
the regular trunk multiple position and the 300 multiple in this same panel 
should be lowered from the 700 to the 300 position. 

4. That the Asheville-Hendersonville, and Toxaway toll lines should be 
assigned by groups on magneto multiple 0-19, which appears in panel 



Decisions and Adjustments of Complaints 127 

T-2, Position 2, and panel T-1, Position 3. The lines should be plainly 
designated by groups and circuit numbers at each multiple appearance. 

5. The 10 recording trunks installed should be used to pass toll and magneto 
calls to toll position instead of the present method of passing the calling 
subscribers number orally to a toll operator. 

6. That the new battery be made available for service to provide a more 
dependable battery reserve. 

7. That the equipment on the power switchboard has been improperly main- 

tained and should be cleared and placed in the condition its importance de- 
mands. 

8. That the wiring to the ringing machines be arranged in a permanent 
manner. 

9. That cable openings, which are temporarily wrapped, be permanently 
wrapped. 

10. That the management arrange for the provision of an accurate cable 
record as a means for securing more economy in operations and improving 
trouble clearing time. 

11. That the test cord be moved to position 5 so that practically all of the 
subscriber multiple will be included in any line circuit under test. 

12. That line installation be tested periodically and all lines having an 

insulation resistance of less than 100,000 ohms be cleared, 

* 

13. That the organization have the support of the top management in se- 
curing competent outside assistance when the volume or class of work 
exceeds their ability to handle. 

14. The Commission is further of the opinion that in order for the aforesaid 
changes to be properly made and in order to improve the telephone service 
in other ways it is necessary for the telephone company to employ a 
thoroughly competent and technically trained plant superintendent or 
engineer who will be given full supervisory authority until plant is placed in 
proper condition and proper service rendered. 

Docket No, 4190 

INCREASE IN THE EXCHANGE RATES OF THE CLIFFSIDE 
TELEPHONE COMPANY 

Order 

In this case the Cliffside Telephone Company comes before the Commission 
requesting authority to put into effect increased exchange rates on the grounds 
that its exchange is being operated without profit. They also point out that its 
present exchange rates are abnormally low. 



128 N. C. Utilities Commission 

The following rate schedule is applied for : 

1 Party 2 Party 4 Party 

Business $3.75 $3.00 

Residence 2.50 2.00 $1.75 

In view of the fact that the Company is operating at no profit and on sub- 
normal rates, the Commission is of the opinion that the rates applied for should be 
authorized as they are considered fair and reasonable and are in line with the rates 
of similar exchanges, therefore. 

It Is Ordered that effective on and after May 1, 1947 the Cliffside Telephone 
Company is hereby authorized to put into effect the above rate schedule proposed 
by the Company to supercede its present schedule. 

This, the 11th day of April. 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3859 

SALE OF TELEPHONE PLANT AND PROPERTY OF COLUMBUS 

TELEPHONE COMPANY TO CAROLINA TELEPHONE 

AND TELEGRAPH COMPANY 

Order 

This matter comes before the Commission upon a combined application of the 
Carolina Telephone and Telegraph Company (Carolina) and the Columbus 
Telephone Company (Columbus), filed on May 27, 1948, for a certificate of con- 
venience and necessity authorizing the purchase by Carolina and the sale by 
Columbus of the telephone plant and property of the latter. 

In the application it is stated that Carolina, a North Carolina corporation, 
owns and operates a telephone system consisting of exchanges and toll lines located 
and extending generally throughout eastern North Carolina, including Bladen and 
Robeson counties ; that Columbus owns and operates exchanges at Whiteville, 
Chadbourn, Tabor City, and Hallsboro, all in Columbus County, North Carolina, 
together with certain toll pole routes between said exchanges ; that Columbus 
County is adjacent to Bladen and Robeson counties; that facilities now af- 
forded the public by Columbus require considerable expansion, repair, rebuilding, 
and improvement, which Columbus is financially unable to effect ; that Carolina 
and Columbus entered into a sale and purchase agreement on the 2nd day of 
April, 1948; that if the aforementioned agreement is consummated, Carolina will 
incorporate in its construction program plans to expand, rebuild, and repair the 
plant and property covered by the agreement ; that Carolina is financially able to 
purchase said plant and property and to make improvements in same; that the 
proposed sale and purchase will be of advantage to present and potential sub- 
scribers and in the interest of the public. 



f 

Decisions and Adjustments of Complaints 129 

From the foregoing representations and from other information available to the 
Commission, it is quite apparent to the Commission that the acquisition of the 
telephone plant and property of Columbus by Carolina would be in the interest of 
and compatible with the public interest and that same should be approved, 
wherefore. 

It Is Ordered That Carolina is hereby granted authority to purchase the 
telephone plant and property of Columbus, and Columbus is granted authority to 
sell said plant and property to Carolina. 

It Is Further Ordered That Carolina, upon the acquisition of said plant 
and property, shall continue to operate same and continue in effect the present 
rates of Columbus. 

It Is Further Ordered That the order in this case shall constitute a 
certificate of convenience and necessity in accordance with Chapter 455, Public 
Laws of North Carolina, 1931. 

This 7th day of June, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 4401 

APPLICATION OF THE CONCORD TELEPHONE COMPANY TO 
ISSUE AND SELL CUAIULATIVE PREFERRED STOCK IN THE 
AMOUNT OF $180,000 TO BEAR INTEREST AT 4^% PER ANNUM. 

Order 

This cause comes before the Commission in the form of an application on 
the part of the Concord Telephone Company requesting authority to issue 
and sell 1800 shares of cumulative preferred stock with a par value of $100.00 
per share and is to bear interest at the rate of 4^% per annum. This stock 
is to be offered to the holders of common stock at the rate of % of one 
share of preferred stock for each share of common stock held as of 
March 1, 1948. 

It is stated that the proceeds from this stock issue are to be used for 
the improvement and expansion of the entire Concord Telephone system. 

It is patent to the Commission that the stock issue is compatible with the 
public interest, is necessary, appropriate for and consistent with the proper 
performance by the Concord Telephone Company of its service to the public 
as a utility, and that the use of the proceeds to be derived from the sale of 
said securities is reasonably required for the purposes set forth, therefore 

It Is Ordered That the stock issue be, and it is hereby, authorized and 
approved. 



This 13th day of April, 1948. 



Charles Z. Flack, Chief Clerk 
Docket No. 4375 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



130 N, C. Utilities Commission 

APPLICATION OF THE CONCORD TELEPHONE COMPANY TO 
ISSUE AND SELL CUMULATIVE PREFERRED STOCK IN THE 
AMOUNT OF $180,000 TO BEAR INTEREST AT ¥/2% PER ANNUM. 

Order 

The Concord Telephone Company informs the Commission that in its 
apphcation, Docket No. 4375, that its intent had been to request approval of a 
$200,000 Preferred Stock issue instead of $180,000 and ask tliat the Commission 
amend its order entered therein accordingly. 

From the record, the Commission finds that the Board of Directors of the 
Concord Telephone Company initially approved the issue in the amount of 
$200,000 and is of the opinion that the $180,000 should be corrected to read 
$200,000, wherefore 

It Is Ordered That the same be, and it is hereby, made and approved. 
This 22nd. day of April, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R, G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4375 

DURHAM TELEPHONE COMPANY 

Order 

Petition for order approving purchase of properties located: (1) ex- 
tending along the Old Oxford Road, across Eno River and Little River 
through the Cameron Property known as Fairntosh, on out to the City 
Pump Station and Lake Michie and the homes of Mrs. Cassam Tilley, 
R. B. Murphy, and others, in Durham County, North Carolina; (2) 
extending out and along the Pickett Road to the homes of A. R. 
Hargrave, Paul Pickett, and Mrs. Sallie Chandler, and along Garrett 
Road to the homes of Dr. Cuyler and Mrs. W. W. Garrett and 
across open fields and woods from the Garrett Road intersection to the 
homes of Mrs. John W. Cole and K. T. Brogden, in Durham County, 
North Carolina; (3) extending out and along the Hope Valley Road 
to the home of S. J. Craig, across country to the homes of Hiram 
Atkins and Mrs. H. H. Elliott, and across country to the homes of Mrs. 
Kate Hudson, J. W. King, and Ralph Markham, in Durham County, 
North Carolina 

This cause comes on to be heard upon the letter petition of Durham 
Telephone Company, Durham, North Carolina, by filing a bill of sale from (1) 
Mrs. Sallie G. Labouisse and husband, John W. Labouisse, Mr. lola P. Tilley, 
R. B. Murphy, and others, covering that certain telephone pole line beginning 
at or near Bragtown just beyond the city limits of Durham, North Carolina, 



I 



Decisions and Adjustments of Complaints 131 

and extending in a generally northern direction along the Old Oxford Road 
across Eno River and Little River, through the Cameron Property known 
as Fairntosh Farms, and on out to the City Pump Station and Lake Michie, 
and to the homes of Mrs. Cassam Tilley, R. B. Murphy, and others, in 
Durham County, North Carolina, (2) John Pickett, Augustus R. Hargrave, 
K. T. Brogden and others covering that certain telephone pole line extending 
out and along the Pickett Road to the homes of A. R. Hargrave, Paul Pickett, 
and Mrs. Sallie Chandler, and along Garrett Road to the homes of Dr. Cuyler 
and Mrs. W. W. Garrett and across open fields and woods from the 
Garrett Road intersection to the homes of Mrs. John W. Cole and K. T. 
Brogden, in Durham County, North Carolina, (3) S. J. Craig, Hiram Atkins, 
J. W. King, and others, covering that certain telephone pole line extending 
out and along the Hope Valley Road to the home of S. J. Craig, across 
country to the homes of Hiram Atkins and Mrs. H. H. Elliott, and across 
country to the homes of Mrs. Kate Hudson, J. W. King, and Ralph Markham, 
in Durham County, North Carolina ; 

And it appearing that the bills of sale contain all the necessary provisions 
for a transfer of the titles to said properties, together with all rights and 
easements necessary or useful in connection therewith ; 

And it further appearing that the properties described in said bills of sale 
should be owned and operated by Durham Telephone Company, and that the 
acquisition of said properties is in the public interest and on the grounds 
of convenience and necessity ; now, therefore, it is. 

Ordered 1. That the transfer of said properties be, and the same is hereby, 
approved, effective March 28, 1946, for the Old Oxford Road line, and 
effective November 1, 1946, for the Hope Valley Road Line, and effective 
November 15, 1946, for the Pickett Road line, with the regular schedule 
of rates on file and approved for Durham Telephone Company effective as of 
said dates. 

Ordered 2. That this order shall constitute a certificate of public convenience 
and necessity. 



This 30th. day of January, 1947. 



Charles Z. Flack, Chief Clerk 
Docket No. 3890 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



132 N. C. Utilities Commission 

APPLICATION OF PROGRESSIVE PARTY OF NORTH CAROLINA, 
BY MARY PRICE, CHAIRMAN AND MARY PRICE, INDIVIDUALLY 

COMPLAINING OF THE REQUIREMENT OF THE DURHAM 

TELEPHONE COMPANY THAT BOTH THE PROGRESSIVE PARTY 

AND MARY PRICE MAKE A DEPOSIT OF $500.00 EACH TO 

GUARANTEE THE PAYMENT OF THEIR RESPECTIVE 

TELEPHONE BILLS. 

On August 19, 1948 the North CaroHna UtiHties Commission received a 
complaint in the form of a letter from Mary Price, Chairman of the Progressive 
Party of North Carolina, in which Miss Price stated that the Progressive 
Party had opened headquarters in the city of Durham, North Carolina, and 
had applied for telephone service both for the headquarters of the Progressive 
Party and for the living quarters of Miss Price individually. The letter 
further stated that the Durham Telephone Company had demanded a cash 
deposit from both the Progressive Party and Miss Price of $500.00 to 
insure the payment of their telephone bills. It is further alleged by Miss 
Price that the action of the Durham Telephone Company in requiring a 
deposit by the Progressive Party and herself individually is arbitrary and 
discriminatory, and this Commission was asked in said letter to make an 
immediate investigation of the purposes and procedure of the Durham Telephone 
Company to determine if the company is fulfilling its obligation in the public 
interest. 

The letter of August 19 was received by this Commission on the 20th 
of August and that very day the Commission began an investigation of the 
things complained of by the said Mary Price, and from said investigation 
the following facts are found: 

1. That prior to opening the office in Durham the Progressive Party 
had its headquarters in Greensboro and telephone service was there rendered 
by the Southern Bell Telephone and Telegraph Company both to the Progressive 
Party at its headquarters and to Miss Mary Price, its Chairman, at her 
living quarters ; 

2. That on August 6, 1948, the Southern Bell Telephone Company rendered 
a bill to the Progressive Party of $339.48 which, at the time of our investigation, 
had not been paid but which has since been paid ; 

3. That in addition to the $339.48 other long distance messages were unpaid, 
the amount of which had not been determined for the reason that full reports 
had not been sent in to the auditor's office in Charlotte ; 

4. That all of the long distance circuits in and out of Durham belong 
to the Southern Bell Telephone Company except a circuit to Camp Butner 
through Creedmoor which was installed during the war, and that the Southern 
Bell Telephone Company has its own operators in the exchange building of the 
Durham Telephone Company, and that the Durham Telephone Company 
merely acts as an agent of the Southern Bell Telephone Company in collecting 
its long distance accounts on a commission basis; 

5. That when the headquarters of the Progressive Party moved to Durham 



Decisions and Adjustments of Complaints 133 

and opened offices there, the Southern Bell Telephone Company, upon request, 
notified the Durham Telephone Company that the Progressive Party had not 
paid its accounts for service rendered in Greensboro and requested that the 
Durham Telephone Company make such requirements of the Progressive Party 
and Miss Mary Price, its Chairman, as was necessary to protect the accounts 
of the Southern Bell Telephone Company ; 

6. That for the reasons above stated the Durham Telephone Company 
notified the Progressive Party and Miss Mary Price, its Chairman, that it 
would require a deposit of $500.00 both from the Progressive Party and Miss 
Mary Price before installing the telephone service in the headquarters of the 
Progressive Party and in the living quarters of Miss Mary Price, which 
living quarters are in the same building, on the same floor, and communicate 
with the headquarters of the Progressive Party ; and 

7. That Miss Mary Price, as Chairman of the Progressive Party, offered 
to the telephone company as tending to establish her credit and that of the 
Progressive Party a statement of the Mechanics & Farmers Bank, which 
reads as follows: "We are acquainted with some of the officers of the Progres- 
sive Party and have reason to believe that it can meet this obligation satisfac- 
torily. Mechanics & Farmers Bank, by J, H. Wheeler, Cashier." The same 
statement appears on the application of Miss Mary Price for individual 
service in her apartment. These statements are mere expressions of opinion. 

From the foregoing findings resulting from the investigation of this Com- 
mission, the Commission is of the opinion that the Durham Telephone 
Company is within its rights in demanding a deposit from the Progressive 
Party and from Miss Mary Price for her living quarters, and that the amount 
demanded is not unreasonable. It has been contended to this Commission 
that while there may be some justification for demanding a deposit from the 
Progressive Party, that there is no justification for demanding a deposit from 
Miss Mary Price, Chairman, for her living quarters, but this Commission 
is of the opinion, and so holds, that since the living quarters of Miss Mary 
Price, Chairman of the Progressive Party, are connected with the headquarters 
of the Progressive Party that not to demand a deposit from her would 
render ineffective a deposit by the Progressive Party for the reason that 
all that would be necessary to divert calls for the headquarters to Miss 
Mary Price's living quarters would be stepping into the next room and using 
the telephone there. Miss Price does not want it for her individual use as 
most private citizens desire it ; she does not want it to call the grocer or the 
doctor or to have social conversations with her neighbors, but she is the 
Chairman of a political Party and she wants the use of the telephone for 
political purposes and, as Chairman of a political Party making a State-wide 
campaign for a National candidate, telephone bills can easily in the enthusiasm 
of a campaign become very large whether made from the headquarters of the 
Progressive Party or the adjoining room used as the living quarters of the 
Chairman of said Party. 

Whenever one subscriber of a telephone company fails to pay his bills 
the loss is reflected in the rates the other subscribers have to pay. A telephone 
company gets its money from no other source than from the sale of telephone 
service, and when it does not collect its bills for service rendered other 



134 N. C. Utilities Commission 

subscribers who pay their bills have to pay for the delinquent subscribers. 
It has always been the policy of this Commission to insist that all utilities 
diligently endeavor to collect all bills and not to extend credit where there 
is a greater chance of not collecting than of collecting the bills. 

Under all the circumstances, the Commission is of the opinion that the 
Durham Telephone Company not only has the authority, but in consideration 
of the rights of its other subscribers, should require a deposit from the 
Progressive Party and from Miss Mary Price, its Chairman individually, 
and that if and when the unpaid bills equal the amount of the deposits that 
additional deposits should be required, or service discontinued. 

This the 27th. day of August, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST; 

Chas. Z. Flack. Chief Clerk 

Docket No. No. 4492 

PROGRESSIVE PARTY OF NORTH CAROLINA. BY MARY PRICE, 
CHAIRMAN AND MARY PRICE INDIVIDUALLY, COMPLAINING OF 
THE REQUIREMENT OF THE DURHAM TELEPHONE COMPANY 
THAT BOTH THE PROGRESSIVE PARTY AND MARY PRICE MAKE 
A DEPOSIT OF $500.00 EACH TO GUARANTEE THE PAYMENT OF 
THEIR RESPECTIVE TELEPHONE BILLS. 

This Matter again comes before the Commission upon Exceptions filed 
by C. O. Pearson and E. R. Avant, attorneys for the Progressive Party of 
North Carolina and Mary Price individually to certain findings of fact made 
by this Commission and furnished to said attorneys under date of the 27th 
day of August. 1948. 

There was no hearing of this matter by the Commission, but an investigation 
was made by a representative of the Commission as the result of a letter 
from the Progressive Party of North Carolina by Mary Price. Chairman, 
dated August 19. 1948, in which complaint was made that the Durham 
Telephone Company had requested a deposit of $500.00 by Mary Price as 
Chairman of the Progressive Party of North Carolina and $500.00 by Mary 
Price individually to guarantee the telephone accounts of said Progressive 
Party of North Carolina and said Mary Price individually before telephone 
service would be installed. In said letter of August 19, 1948, Mary Price, 
Chairman of the Progressive Party of North Carolina, contended that the 
Durham Telephone Company had acted in an arbitrary and discriminatory 
manner in requiring said deposits and this Commission was asked to investigate 
same to determine whether the action of the Durham Telephone Company 
was arbitrary and discriminatory. The same day the letter was received a 
representative from this Commission went to Durham and made an investigation. 
On August 23, 1948, this Commission, through its Chairman Stanley Winborne, 
advised Mary Price, Chairman of the Progressive Party of North Carolina, 



Decisions and Adjustments of Complaints 135 

that the telephone company was within its rights in demanding the two said 
deposits, and that the demands were reasonable. On August 26, 1948, E. R. 
Avent, of counsel for the complainants, appeared before the Commission and 
asked that the Commission make a formal findings of facts which its 
investigation had disclosed, so that Exceptions might be filed to same. 
Whereupon, on the 27th day of August, 1948, the Commission made a formal 
finding of facts enumerating each finding of fact and submitted same to 
the said E. R. Avent, and it is to this formal finding of facts, dated 27th 
day of August, 1948, that Exceptions were filed. 

In the findings of fact at the request of the complainants to which 
Exceptions are taken, it should be understood that this Commission is not 
required to pass upon the financial responsibility of the applicants for telephone 
service as that is a matter to be determined by the telephone company 
subject only to the general rules of the Commission requiring that the 
telephone company exercise due diligence and sound judgment in extending 
credit only to those users of the telephone who are able to pay their bills 
so as not to require other telephone subscribers to subsidize the delinquent ones. 

There are numerous court decisions which hold that the extension of 
credit and the requirement of deposits to safeguard accounts is a matter for 
the management of a public utility. The Supreme Court of the state of 
New York has exhaustively and clearly defined the right of a utility to 
determine to whom credit should be extended. In the case of People, ex rel, 
Western Union Telegraph Company vs. Public Service Corporation, P. U. R. 
1920F, 630 (especially p. 637), 192 App. Div. 748, 183 N. Y. Supp-. 659, it 
is stated that : "Obviously, if the Public Service Commission may be called 
upon to determine that the Western Union Telegraph Company shall extend 
credit upon particular terms to the Postal Telegraph Company, its powers 
may be involved in behalf of every other corporation or individual, no matter 
what may be his or its responsibility ; it must be prepared to pass upon 
the responsibility of parties, and to determine the policy of every telephone 
and telegraph corporation in the state. In short, the Public Service Commission, 
instead of devoting its attention to the rights of the public, must maintain a 
credit bureau, and accept the responsibility of determining how the internal 
affairs of telegraph companies shall be handled, and, logically, the state of 
New York should assume the duty of paying dividends, or at least the making 
good of losses due to improper granting of credits." In said opinion the 
Court further says : "It certainly cannot be held with any degree of 
plausibility that the giving or withholding of credit for the few days involved 
in the practical administration of telegraph companies is such an unjust, 
unreasonable, or unjustly discriminatory, or unduly preferential practice as to 
have any appreciable eft'ect upon the rates or service of these corporations." 

The Commission is, however, authorized to require reasonable rules for 
extension of credit and "the right of the telephone company to manage its 
own property does not affect the jurisdiction of the Commission to determine 
whether a rule is unreasonable." Mitchell vs. Mountain States Telph. and Teleg. 
Company, P. U. R. 1927 A, 778. 

This Commission has repeatedly insisted that no utility extend credit where 



136 N. C. Utilities Commission 

it reasonably appears that the chances are against the collection of the bills, 
and tariffs have been filed and approved by this Commission providing for 
the requirement by utilities of deposits or other guarantees for the payment 
of bills in case the solvency of the one to whom credit is extended is doubtful. 
This Commission has found that the requirement of the Durham Telephone 
Company that each of the complainants make a deposit of $500.00 is reasonable 
and in the public interest. 

Wherefore, each and all of the Exceptions, dated 31st day of August, 1948, 
and filed with this Commission on September 2, 1948, are overruled, denied 
and disallowed. 

This the 15th day of September, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G, Johnson, Commissioner 

ATTEST: 

Charles Z. Flack, Chief Clerk 

Docket No. 4492 

EAST BEND TELEPHONE COMPANY 
DIAL TELEPHONE SERVICE FOR EAST BEND 

Order 

In this case J. E. Keiger, Jr. comes before the Commission and asks that 
he be granted authority to provide and maintain an automatic dial telephone 
exchange at East Bend, N. C. 

In support of the application, the petitioner filed a petition signed by 51 
residents of the town of East Bend which reads as follows : 

"In as much as East Bend, North Carolina has never been provided 
with local telephone service and considering that the Southern Bell 
Telephone System nor any other telephone company has never endeavored 
to provide such a service, we the citizens of East Bend hereby petition J. 
Lee Keiger, Jr. to provide and maintain an automatic dial telephone ex- 
change within the corporate city limits of East Bend. It is agreed that the 
service shall be 10 party line, coded ringing, dial service for which we will 
subscribe and agree to a connection fee of $7,50 and a monthly rental $2.00 
for each residence phone and $2.50 for each business phone." 

The Commission is well aware of the need for the telephone service requested 
and believes the request should be granted. 

The rates for the proposed multi-party service to be given are considered rea- 
sonable, and will be authorized when tariff is filed and service supplied. 

The proposed connection charge of $7.50 cannot be authorized as such charges 
nmst be in accordance with the charges for this class of service provided for in the 
Commission's General Exchange Tariff prescribed for telephone companies whose 
annual revenue is $50,000 or less, issued on June 11, 1946. 



Decisions and Adjustments of Complaints 137 

In view of the foregoing and the opinion of the Commission that the pro- 
posed exchange is in the interest of and compatible with the public interest, 
therefore 

It Is Ordered, That J. E. Keiger, Jr. is hereby authorized to provide and 
maintain an automatic dial telephone exchange at East Bend, with town limits as 
base rate area, and to put into effect when service is supplied the following multi- 
party rates applicable to base rate area : 

Business $2.50 

Residence 2.00 

The usual toll charges shall apply. 

It Is Further Ordered, That, this order shall constitute a Certificate of 
Convenience and Necessity in accordance with above said application. 

This the 11th. day of July, 1947. 

Stanley Winborne, Chairman 
) Fred C. Hunter, Commissioner 

R. G. Johnson, Commissioner 
ATTEST: 

Charles Z. Flack, Chief Clerk 
Docket No. 4101 



FAISON TELEPHONE COMPANY: CERTIFICATE OF 
CONVENIENCE AND NECESSITY 

Order 

In this case the Faison Telephone Company operating a telephone exchange 
at Faison. North Carolina, and vicinity, comes before the Commission and asks 
that it be granted a certificate of Convenience and Necessity to operate as a 
telephone utility as provided by law. 

In its application, the Company says : 

"The present company has for several years inadvertently overlooked the 
law which requires a Certificate of Convenience and Necessity and they now 
want to get on a sound basis and comply with all legal requirements. 
It is serving a community which needs and desires the service which is being 
furnished, in that it is a thickly populated rural area and in one of the lead- 
ing trucking belts of the state. The present company is a corporation with 
$5,000.00 of outstanding capital stock, is getting along very nicely and is no 
doubt able financially to maintain the service which is required by the 
community." 

It is quite evident to the Commission that there has been no intent on the 
part of the company to evade or Ignore the law, therefore, the Commission is 
of the opinion that the request of the company should be granted. 

It Is, Therefore, Ordered That a Certificate of Convenience and Necessity 
be and hereby is granted to the Faison Telephone Company to operate as a tele- 



138 N. C. Utilities Commission 

phone utility in the town of Faison. North CaroHna, and vicinity, nunc pro tunc. 
It Is Further, Ordered That this order shall constitute a Certificate of 
Convenience and Necessity in this cause. 

This 24th day of November, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Charles Z. Flack, Chief Clerk 

Docket No. 4242 

INCREASE IN EXCHANGE RATES AND MILEAGE CHARGES OF 
THE HEINS TELEPHONE COMPANY 

Order 

In this case the Heins Telephone Company comes before the Commission 
and asks that it be granted authority to increase its exchange rates and mileage 
charges. 

The abnormal increase in wages, material and supplies used in the operation of 
the exchanges, the Company witness pointed out. had had the effect of reducing 
the 1946 net income of the Company to $664.06 and therefore made additional 
revenue absolutely necessary for the Company to continue to operate and supply 
satisfactory service. 

The increase in the number of subscribers of the Company since the present 
rates were put into effect and the fact that the exchange service at each of the 
three exchanges of the Company is available to each and every subscriber without 
additional cost to the regular exchange rate was given as an additional justification 
for the rates requested, 

In view of the testimony adduced by the Company witness and the financial 
reports of the Company presented, it was apparent to the Commission that the ad- 
ditional revenue requested was needed and should be granted. The rates and 
mileage charges requested, in the opinion of the Commission, are reasonable and 
should be approved, therefore, 

It Is Ordered, that, effective June 1. 1947. the Heins Telephone Company is 
hereby authorized : 

1. To put into effect the following schedule of rates at its exchanges at 
Sanford, Jonesboro, and Broadway : 

Individual 2-Party 4- Party 
Line Line Line 

Business $5.00 $4.25 $3.50 

Residence $3.00 $2.50 $2.00 

Mileage charges apply when applicable. 



Decisions and Adjustments of Complaints 139 

EXTENSIONS: 

Business $1.25 

Residence $075 

Hotel: 

Wall and desk set $0.50 

Hand Set $075 

MULTI-PARTY: 

(For service beyond Base Rate Area) 

6- Party 8- Party 10- Party 

Line Line Line 

Business . $3.25 $3.00 $2.75 

Residence $175 $1.60 $1.50 

Subject to mileage charges. 

2. Subscriber owned line per main station per month : . 

Business $1.25 

Residence 1.00 

3. Mileage charges applicable to all classes of service beyond Base Rate Area: 
Individual line, private branch exchange trunk line or ringing circuit, per 
^ mile or fraction thereof, per month 63c 

Party lines, per % mile or fraction thereof, per month, each main station : 

2 Party 32c 

4 Party 16c 

6 Party -- lie 

8 Party 8c 

10 Party 7c 

This, the 29th day of May, 1947, 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Charles Z. Flack, Chief Clerk 

Docket No. 3652 

STOCK AND BOND ISSUE OF HICKORY TELEPHONE COMPANY 

Order 

In this case the Hickory Telephone Company comes before the Commission 
with request for authority to issue and sell (a) Debentures in the amount 
of $250,000 due and payable in installments of $25,000 per year and interest until 
amortized, beginning January 1, 1950. (b) $100,000 of Preferred Stock to be 



140 N. C. Utilities Commission 

sold to the public at not less than $100 per share, par value, (c) $100,000 of 
Common Stock in shares of $100, par value, to be sold to the present stockholders 
and if not bought by present stockholders to be offered to the public at not less 
than par. 

In its application the Company points out that it is planned to convert 
the present common battery type of exchange at Hickory to an automatic dial 
system, and that in order to carry out this plan and to meet the immediate need 
and growing demand for telephone service an expenditure of $488,000 will be 
required, and that the proceeds, to be derived from the sale of said bonds and 
stock, will be used in carrying out the proposed improvement program. 

No increase in rates is asked. 

The request of the Company appears to the Commission to be compatible with 
the public interest necessary or appropriate for and consistent with the proper 
performance by the Company of its service to the public as such utility, and will 
not impair its ability to perform that service; and is necessary and appropriate 
for such purpose, therefore 

It Is Ordered: That the Hickory Telephone Company is hereby authorized 
to issue and sell bonds and stock as set forth above, the proceeds from the same 
to be restricted to the purposes set forth in application. 

This the 4th. day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 3895 ' 

APPLICATION OF THE HICKORY TELEPHONE COMPANY 
FOR AN INCREASE IN RATES AND CHARGES 

Order 

APPEARANCES : 

For the Applicant: 

John W. Aiken, Hickory, North Carolina 
Bailey Patrick, Hickory, North Carolina 

For the Protestants: 

Thomas P. Pruitt, Hickory, North Carolina, for the City of Hickory. 
O. Lee Horton, 611 West Union Street, Morganton, North Carolina, 

for the Town of Valdese, North Carolina. 
W. R. McDonald, Hickory, North Carolina, for the Hickory Merchants 

Association, Inc. 
Max Steelman, Hickory, North Carolina, for the Hickory Chamber of 

Commerce. 
Mrs. Margaret Huggins, Hickory, North Carolina, for the Hickory 

Merchants Association, Inc. 



Decisions and Adjustments of Complaints 141 

This cause comes before the Commission on the appHcation of the Hickory 
Telephone Company filed on August 18, 1948, and was heard before the Commis- 
sion on October 15, 1948. The matter was properly advertised. 

In this case the Hickory Telephone Company is requesting an increase in its 
rates and charges now in effect at its three exchanges located at Hickory, Valdese, 
and Granite Falls. 

Witnesses for the applicant testified that since December 31, 1945, the ap- 
plicant has invested $624,000 in new plant and equipment which included dial 
equipment for the Hickory exchange, additional switchboards for the Valdese 
exchange, and central office equipment for the Granite Falls exchange; that the 
cost of labor, material, and equipment have materially increased since the war; 
that the requested rates would yield additional gross revenue of approximately 
$48,000 per year; that the requested rates would fail by $19,000 to produce suf- 
ficient income to meet the financial requirements of the company; that the 
requested rates would yield a rate of return of about 4.5 per cent on net invest- 
ment. 

In further support of its application the company offered in evidence Exhibits 
A through H which the Commission accepted as such. 

Counsel for the City of Hickory took the position that the applicant is en- 
titled to an increase in rates but not in the amount requested; cross examined 
company witnesses at length but failed to develop any additional evidence; 
admitted that the company now had an excellent telephone system at Hickory. 

Counsel for the Town of Valdese also took the position that the company 
was entitled to an increase in rates at Valdese but not in the amount requested 
and that the company should furnish the same service at Valdese that it furnishes 
at Hickory. 

The Town of Granite Falls was not represented. 

From the foregoing facts and from other available information the Commission 
finds that the applicant has shown the need for additional net revenue; that the 
requested rates and charges are necessary, fair, and reasonable and should be 
allowed. 

However, the Commission cannot overlook the fact that the applicant's showing 
was based primarily on the operations for the period covering the final stage 
of the conversion of the Hickory exchange to automatic dial at great expense and 
consequently that some of the items charged to operating expenses might be non- 
recurring; that new subscribers which the company anticipates should mean 
additional gross revenue. Therefore, the Commission is of the opinion and further 
finds that this cause should be retained for further study and consideration by 
the Commission for a period of fifteen months from this date and that this order 
should be subject to any change which the Commission may deem necessary and 
proper. 

Wherefore It Is Ordered that the Hickory Telephone Company is hereby 
authorized to place in effect the following rates and charges on all billings on 
and after December 1, 1948: 



142 N. C. Utilities Commission 

HICKORY EXCHANGE 
Class Of Service Monthly Rates and Charges 

Ind. Line Bus. $6.50 

Two Party Line Bus. 5.00 

Five Party Line Bus. 3.75 

Ind. Line Res. - 3.75 

Two Party Line Res. 2.75 

Five Party Line Res. 2.00 

Extension Bus. L50 

Extension Res. LOO 

Extension Gongs .75 

Extension Bells .35 

Jacks, Plugs, and Mis. Eqp. .25 

P.B.X. Trunks 8.00 

P.B.X. 20 or Less Phones L50 

P.B.X. Hotel Phones L50 

Rural Multi-Party Bus. 3.00 

Rural Multi-Party Res. 2.00 

Extension Mag. Bus. L25 

Extension Mag. Res. LOO 

Service Stations Bus. L50 

Service Stations Res. L25 

Pay Stations No Charge 

Official Phones No Charge 

GRANITE FALLS EXCHANGE 
Class Of Service Monthy Rates And Charges 

Ind. Line Bus. $4.00 

Two Party Line Bus. 3.00 

Four Party Line Bus. 2.50 

Ind. Line Res. 2.75 

Two Party Line Res. 2.25 

Four Party Line Res. 1.75 

Extension Bus. 1.25 

Extension 1 .00 

Extension Gongs .75 

Extension Bell .35 

P.B.X. Trunk Line 8.00 

P.B.X. Phones 1.50 

Pay Stations No Charge 

Official Phones - No Charge 

Rural Multi-Party Bus. 2.75 

Rural Multi- Party Res. 2.00 

Service Stations Bus. 1.50 

Service Stations Res. 1.00 

VALDESE EXCHANGE 
Ind. Line Bus. -- - --_ $4.50 



Decisions and Adjustments of Complaints 143 

Two Party Bus. 3.50 

Four Party Bus. 3.00 

Extension Bus. 1.25 

Ind. Line Res. 2.75 

Two Party Line Res. 2.25 

Four Party Line Res. 1.75 

Extension Res. 1.00 

Extension Gongs .75 

Extension Bells .35 

Pay Stations No Charge 

Official Telephones No Charge 

Rural Multi-Party Bus. 2.75 

Rural Multi-Party Res. 2.00 

Rural Line Extension Bus. 1.25 

Rural Line Extension Res. 1.00 

P.B.X. Trunks 8.00 

P.B.X.Phones 1.50 

Service Stations Bus. 1.50 

Service Stations Res. 1.00 

It Is Further Ordered that this cause shall be retained for further study 
and consideration by the Commission for a period of fifteen months from this 
date and shall be subject to any change which the Commission may deem neces- 
sary and proper. 

By Order of the Commission. 

This the 30th day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Charles Z. Flack, Chief Clerk 

Docket No. 4479 

APPLICATION OF THE HICKORY TELEPHONE COMPANY TO 

ISSUE AND SELL BOTH COMMON AND 

PREFERRED CAPITAL STOCK. 

Order 

This cause comes before this Commission on the application of the Hickory 
Telephone Company for authority to issue and sell 100 shares of Common Stock, 
par value $100.00 per share, and 1500 shares of 5% Cumulative Preferred Stock, 
par value $100.00 per share. 

It is set forth in the application that the receipts realized from this sale are 
to be used for the purchase and installation of additional equipment ; and that at 
the present time the Company owes the banks and Automatic Electric Company 
in excess of $100,000.00. 

On the basis of the foregoing facts and other available information this Com- 
mission is of the opinion that the issuance and sale of Capital Stock as herein re- 



144 N. C. Utilities Commission 

quested is for a lawful object within the corporate purposes of the utility; is 
compatible with the public interest ; is necessary or appropriate for or consistent 
with the proper performances by the utilitiy of its service to the public as such 
utility and will not impair its ability to perform that service, and; is reasonably 
necessary and appropriate for such purpose. 

Wherefore, It Is Ordered That the Hickory Telephone Company is hereby 
granted authority to issue and sell 100 shares of Common Stock, par value $100.00 
per share, and 1500 shares of 5% Cumulative Preferred Stock, par value $100.00 
per share. 

It Is Further Ordered That the proceeds from this sale shall be used 
for the purposes specified herein above. 

By Order of the Commission. 

This the 27th day of September, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No 4520 

INCREASE IN THE EXCHANGE RATES OF THE LAUREL HILL 
TELEPHONE COMPANY. 

Order 

In this case the Laurel Hill Telephone Company comes before the Commission 
and asks for an increase in its exchange rates on the grounds that the Company 
is being operated at a loss. 

Witness for the Company submitted an income statement of the Company for 
the period January 1, 1947 to September 30, 1947, which showed a loss of $381.36 
for the period. 

The witness stated that during the operation of the Company for the past 15 
or 20 years it had never paid a dividend to its stockholders nor had it paid any 
salaries to its officers. In order to keep the Company going, he stated, the yearly 
deficits were overcome by donations from the owners. 

It was apparent to the Commission that the operation of the Company was a 
losing proposition and should be granted the increase in rates requested as in the 
opinion of the Commission the requested rates were fair and reasonable, therefore 

It Is Ordered That on billings on and after March 1, 1948, the Laurel Hill 
Telephone Company is hereby authorized to put into effect the following base 
rate area* rates for all types of instruments with mileage charges where applicable 
shown in Company's General Exchange Tariff: 

2 Party 4 Party 6 Party 
$2.50 $2.00 $1.75 





1 Party 


business 


$4.00 


Residence 


3.00 



Decisions and Adjustments of Complaints 145 

*Base rate area : the area within a radius of two miles of central office. 
This the 4th. day of February, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
J R. G. Johnson, Commissioner 

Attest : 

Chas. Z. Flack, Chie] Clerk 
Docket No. 4172 ' 

LEE TELEPHONE COMPANY'S BOND ISSUE 

• Order 

In this case the Lee Telephone Company comes before the Commission and 
asks for authority to issue bonds in the sum of $684,000.00. 

In justification of said bond issue, the Company in its application says: 

That petitioner has entered into an agreement with the Connecticut Mutual 
Life Insurance Company of Hartford, Connecticut, for a loan of $684,000, said 
loan to be represented by an issue of bonds in the sum of $684,000.00, bearing 
interest at the rate of 3% payable semi-annually, said issue to be due and pay- 
able December 31, 1971. 

That said sum of money received from said bond issue is to be used 
as follows : 

(1) For the payment and retirement of the outstanding bonds of said 
Company. 

(2) For the payment of certain negotiable notes executed by said Company 
within the past several months to pay for certain equipment. 

(3) For plant extension and improvements in service of the Company 
in both Virginia and North Carolina. 

That it is advantageous to said company that its properties be extended 
and improved. 

That the said Lee Telephone Company has not paid any dividends upon 
its common stock for a good while ; that all profits have been retained by 
the company and used for improvement of service and under conditions 
existing it is very necessary and proper that the company expand in order 
to give service to many patrons who now desire it and to build the required 
lines. 

A copy of the authorization granted by the State Corporation Commission 
of Virginia is attached and made a part of the application. 

The request of the Company appears to the Commission to be compatible 
with the public interest necessary or appropriate for and consistent with the 
proper performance by the Company of its service to the public as such 
utility and will not impair its ability to perform that service ; and is 
necessary and appropriate for such purpose, therefore 



146 N. C. Utilities Commission 

It Is Ordered, that the Lee Telephone Company be and hereby is authorized, 
empowered and permitted to issue and sell for cash privately to the Connecticut 
Mutual Life Insurance Company of Hartford, Connecticut $684,000 principal 
amount of first mortgage bonds, 3% series, due December 31, 1971, the selling 
price not to be less than the principal amount thereof plus accrued interest 
to the time of delivery ; that the proceeds to be derived from the bond issue 
be applied to the following purposes: (a) to refund $384,000 principal 
amount of first mortgage bonds of the applicant presently outstanding; (b) to 
provide funds for making additions and improvements to the telephone plant 
of the applicant ; all substantially in accord with the application and as 
otherwise set forth in the record herein. 

It Is Further Ordered, that the Lee "Telephone Company shall, within 
six months from date of this order, file a report to this Commission covering 
the issue of bonds herein authorized and data showing that the provisions of 
this order have been complied with. 



This the 4th. day of March, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 3930 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



LEE TELEPHONE COMPANY 
IN THE MATTER OF SALE OF BONDS 

Order 

The application of Lee Telephone Company, Martinsville, Virginia, having 
been filed for authority to issue its sixteen-year 4% Sinking Fund Debentures, 
due November 1, 1964, in the amount of $400,000.00 for purposes of improving 
and expanding its plant, together with due evidence of authorization by the 
State Corporation Commission of Virginia, all authorization requisite under 
the laws of North Carolina is hereby granted. 

By Order of the Commission. 

This the 15th day of December, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4587 



Decisions and Adjustments of Complaints 147 

IN THE MATTER OF APPLICATION OF LEXINGTON TELEPHONE 

COMPANY TO ISSUE UP TO 500 SHARES OF COMMON CAPITAL 

STOCK PAR VALUE $100.00 PER SHARE. 

Order 

In this case the Lexington Telephone Company comes before the Commission 
and asks for authority to issue up to 500 shares of Common Capital Stock, 
par value $100.00 per share, pro rata to the present common stockholders, 
for cash at not less than $100.00 per share. 

It is set forth in application that the charter of the Company provides 
for the issuance of up to $200,000 Common Stock and that at present the 
amount is only $75,000.00. 

It is also set forth in the application that the money realized from the 
proposed stock issue will be used to retire short term notes and for expansion 
of plant. 

On reviewing this application and the reports of the Company on file in 
this office, the Commission is of the opinion that the proposals of the petitioner 
are compatible with the public interest, are necessary for and consistent with 
the proper performance of the Lexington Telephone Company of its service 
to the public as a utility and will not impair its ability to perform such 
service, therefore ^ 

It Is Ordered, that the Lexington Telephone Company is hereby authorized, 
empowered and permitted to issue and sell up to 500 shares of Common 
Capital Stock, par value $100.00 per share, pro rata to the present common 
stockholders, for cash, at not less than $100.00 per share, for the purposes 
set forth in the application. 



This 16th day of February, 1948. 



Chas. Z. Flack, Chief Clerk 
Docket No. 4009 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



PREFERRED STOCK ISSUE OF LEXINGTON TELEPHONE 

COMPANY 

Order 

In this case the Lexington Telephone Company comes before the Commission 
and asks that it be granted authority to recall its 215 shares, par value $100.00, 
outstanding 7% Preferred Stock and to offer for sale up to 600 shares Series 
A Cumulative Preferred Stock, par value $100.00, paying a dividend of 
$4.00 per share annually, to be sold for not less than par value. 

In its application the Company states that the money to be realized from 
the sale of the new issue will be used to retire the present 7% Preferred 



148 N. C. Utilities Commission 

Stock, retire outstanding notes in the amount of $12,000.00 and for the 
expansion of the Company's facilities. 

The financial reports of the Company show that it is in a healthy financial 
condition. 

It is patent to the Commission that the request of the Company is 
compatible with the public interest, necessary and appropriate for and consistent 
with the proper performance by the utility of its service to the public as such 
utility, and will not impair its ability to perform that service, and is necessary 
and appropriate for such purpose. 

It Is, Therefore, Ordered: That the Lexington Telephone Company is 
hereby granted authority to retire its 215 shares of 7% Preferred Stock and 
to issue and sell up to 600 shares of Cumulative Preferred Stock, par value 
$100.00 bearing interest at 4% per annum at not less than par value, the 
proceeds of said issue to be used in retiring the Company's present 215 shares 
of 7% Preferred Stock, outstanding notes amounting to $12,000, and for 
expansion of the Company's facilities. 

This, the 27th. day of May, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 4010 

ADJUSTMENT IN MULTI-PARTY RURAL MILEAGE CHARGES OF 
THE LEXINGTON TELEPHONE COMPANY. 

Order 

In this case the Lexington Telephone Company comes before the Commission 
and asks that it be authorized to put into effect, in lieu of the present two 
zone mileage system, the following mileage charges on rural multi-party 
service : 

Rural multi-party mileage charges, air line distance, per main station, per 
month : . 

No mileage charge within two miles of base rate area. 

From two to four miles beyond base rate area 25c 

From four to six miles beyond base rate area 50c 

From six miles to eight beyond base rate area 7Sc 

Beyond eight miles from base rate area, 75c plus 25c for each mile or 
fraction thereof. 

At the present time the Company has only two multi-party mileage rate 
divisions. A mileage charge for service within five miles of the base rate area 
and a mileage charge for service beyond 5 miles from base rate area. 

The petitioner stated that he thought the present mileage set-up was 
inequitable and out of line with similar charges at other telephone exchanges 



Decisions and Adjustments of Complaints 149 

in the state, and that the change proposed was equitable and reasonable. 

The Commission is of the opinion that the change proposed is proper and 
reasonable and should be authorized, therefore 

It Is Ordered, That the Lexington Telephone Company is hereby authorized 
to put into effect on billings on and after November 1, 1947 the mileage 
charges proposed as set forth above. 

It Is Further Ordered, That the Lexington Telephone Company is hereby 
authorized and directed to amend its General Exchange Tariff and Local 
Exchange Tariff to conform to mileage charge provided by the order. 

This, the 29th day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk . ^ ' 

Docket No. 4136 

APPLICATION OF LEXINGTON TELEPHONE COMPANY 

FOR CONVERSION OF FOUR-PARTY RESIDENCE LINES TO 

FIVE-PARTY RESIDENCE LINES. 

few- __ 

Order 

This matter comes before the Commission on the application of the Lexington 
Telephone Company for authority to convert its existing four-party residence 
lines to five-party residence lines on a temporary basis. 

In support of its request the applicant states that it has had equipment on 
order since 1946; that deliveries beginning about January 1, 1949, have been 
promised but not in quantities sufficient to enable the company to meet the 
demand for service; that the company has increased the number of stations 
since January 1, 1946, by approximately 750, or 45 per cent; that on January 1, 
1946, the company had 250 held orders as compared with between 600 and 700 
today; that the granting of this proposed conversion would mean that several 
hundred applicants, some of whom have qualified for preference under Utilities 
Order U-2, would receive service much sooner than would otherwise be possible. 

Notice of this application was properly published in the Lexington newspaper. 
Neither the applicant nor this Commission received any protests. 

In view of the foregoing facts and other available information the Commission 
finds that the proposed conversion would be in the interest of the public. 

Wherefore It Is Ordered that the Lexington Telephone Company is hereby 
granted authority to convert its four-party residence lines to five-party residence 
lines. 

It Is Further Ordered that the present four-party residence rate shall 
apply to the new five-party residence service. 



150 N. C. Utilities Commission 

It Is Further Ordered that the extra stations shall be transferred to new 
lines as soon as sufficient facilities are available but not later than December 

20, 1953. 

By Order of the Commission. 

This the 20th. day of December, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4592 



APPLICATION OF THE MONROE TELEPHONE COMPANY FOR AN 
INCREASE IN GENERAL EXCHANGE RATES. 

Order 
APPEARANCES : 

For Applicant: 

0. L. Richardson 
For Protestant: 

None 

This cause comes before the Commission in the form of an application filed 
with the Commission by the Monroe Telephone Company on December 11, 1947 
and heard before the full Commission on January 28, 1948. 

In this case the applicant is asking for authority to increase its General 
Exchange Rates in amounts ranging from 25c for four-party service to 50c 
for individual line service per month. It is estimated that this increase will 
gross around $6,531.00 annually. 

In support of the application, witness for the Company offered the following 
testimony : 

1. Prevailing prices of material and equipment are 
over 25% higher than before the war. 

2. In the past 2 years the Company has invested 
$60,000 in plant. 

3. The Company has recently employed additional 
operators. 

4. Salary and wage increases aggregating approxi- 
mately $7,000.00 a year have been approved. 

From the testimony and from other data on file with the Commission, the 
Commission finds that the proposed increase would net only $3,500.00 after 
allowing for both Federal and State taxes, that the rates requested are on a 



I Party 


2 Party 


4 Party 


$4.00 


$3.50 


$3.00 


2.75 


2.00 


1.75 



Decisions and Adjustments of Complaints 151 

parity with those of comparable exchanges and that the Company is operated 
both efficiently and economically. In view of the foregoing, the Commission 
concludes that the rates requested are reasonable and proper and should be 
granted. 

It Is, Therefore, Ordered That the Monroe Telephone Company be, and it 
is hereby, authorized and directed to place in effect on and after June 1, 1948 
the following rates : 



Business 
Residence 

This 28th. day of May, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Chas. Z, Flack, Chiej Clerk 

Docket No. 4260 - 

INCREASE IN EXCHANGE RATES OF THE MOORESVILLE 
TELEPHONE COMPANY. 

Order 

In this case the Mooresville Telephone Company comes before the Commission 
and asks that it be authorized to increase its exchange rates on account of 
mounting cost of operating expenses which is estimated at the present time 
to amount to $6,000 on an annual basis. 

The Company requests that it be permitted to put in the following rate 
schedule : 

Business : 
Wall 
Desk 
Handset 



Residence : 
Wall 
Desk 
Handset 



Party 


J Party 


4 Pan 


$4.50 


$3.25 




4.75 


3.50 




5.00 


3.75 




$3.00 




$2.00 


3.25 




2.25 


3.50 




2.50 



The Company estimates that the rates proposed would give a gross increase 
in revenue of $8,664.00. 

No one in opposition appeared at the hearing although the Commission had 
received several letters prior to the hearing from subscribers of the Company. 
These letters were read at the hearing for information only. 

The record in the case, in the opinion of the Commission, justifies an 



152 N. C. Utilities Commission 

increase in rates but not such an increase as proposed by the Company. The 
Commission beheves that the following rates are reasonable and should be 
allowed and it will so order : 

1 Party 2 Party 4 Party 

Busmess $4.50 $3.50 

Residence 3.00 ...... 2.00 

The above rates are for handsets and all other types of instruments and the 
differential now in effect on type of instrument is hereby cancelled. 

These rates will increase the gross revenue by approximately the amount 
of wage increase. In view of the foregoing, 

It Is, Therefore. Ordered, That effective on October 1, 1947, the Mooresville 
Telephone Company is hereby authorized to put into effect the rate schedule 
above proposed by the Commission. 

This 16th day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4019 

AUTOMATIC DIAL SYSTEM RATES FOR HILLSBORO EXCHANGE 
OF MORRIS TELEPHONE COMPANY. 

Order 

In this case the Morris Telephone Company comes before the Commission 
and asks that it be granted authority to put into effect the following exchange 
rates at its Hillsboro exchange upon the installation and inauguration of 
automatic dial service : 

Business 
Residence 

In justification of the proposed rates the company sets forth that it plans 
to spend $40,000 in making the change to an automatic dial system at its 
Hillsboro Exchange, and that an increase in the exchange rates there will 
be necessary if the exchange is to be operated at profit. 

Financial statements submitted show that the exchange was operated in 1945 
at a deficit of $968.70 and that the proposed rates on an annual basis would 
produce a net operating income of $1,012.93 — a rate return of 2.45% on 
property investment. 

Another financial statement submitted shows that present rates on the present 
number of subscribers would produce an annual gross revenue of $6,477, 
while the proposed rates on the same basis would give an annual gross 
revenue of $8,520.00. 



1 Party 


2 Party 


4 Party 


$4.25 


$3.75 


$3.25 


$3.00 


$2.75 


$2.25 



Decisions and Adjustments of Complaints 153 

Due notice was given to the O. P. A. and other interested parties about 
the proposed rates and the date of hearing. 

It was quite apparent to the Commission that the present rates are not 
producing adequate revenue, and that under the change to the dial system 
and the expenditure of $40,000 increased rates should be granted. However, 
the Commission is of the opinion that the proposed rates should be slightly 
pared in order that they may conform to rates approximately in effect at 
similar exchanges in the state. In the opinion of the Commission the following 
rates should be authorized when dial service is supplied : 



1 Party 


2 Party 


4 Party 


$4.00 


$3.50 


$3.00 


$3.00 


$2.50 


$2.00 



Business 
Residence 

In view of the foregoing, therefore, 

It Is Ordered : That the Morris Telephone Company is hereby authorized 

to put into effect at its Hillsboro exchange when automatic dial service is 
supplied to subscribers at said exchange the following exchange rates in lieu 
of present rates : 

1 Party 2 Party 4 Party 

Business $4.00 $3.50 $3.00 

Residence $3.00 $2.50 $2.00 



Stanley Winborne, Chairman 
Fred C, Hunter, Commissioner 
R. G. Johnson, Com,m,issioner 



This the 18th. day of April, 1947. 



Attest : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3798 



APPLICATION OF MORRIS TELEPHONE COMPANY FOR 
PERMT-SSION TO ISSUE PREFERRED STOCK 

Order 

In this case the Morris Telephone Company comes before the Commission 
and makes application for authority to be permitted to issue not in excess 
of Thirty-Two Thousand Seven Hundred Dollars ($32,700) of preferred stock, 
such stock to have a par value of One Hundred Dollars ($100) per share, 
and to pay a dividend of five per centum (5%) per annum. 

The purpose of the issuance of said stock, the application sets forth, is 
to acquire funds with which to purchase and pay the cost and expense of 
installing in its Hillsboro Exchange an automatic or dial telephone system 
and also possibly to -extend its telephone service to the village of Efland at 
an estimated cost of Forty-Five Thousand Seven Hundred Seventy-Two Dollars 
and Ninety-Four Cents ($45,772.94). 

The application further states that the installation of this system in the 



154 N. C. Utilities Commission 

Hillsboro Exchange of the Corporation is compatible with the public interest 
and will enable the Corporation better to serve the public. 

The Company filed with the application a financial statement showing that 
it is in sound financial condition. The request of the Company appears to 
the Commission to be compatible with the public interest, necessary and 
appropriate for and consistent with the proper performance by the utility of its 
service to the public as such utility, and will not impair its ability to perform 
that service, and is necessary and appropriate for such purpose. 

It Is, Therefore, Ordered, That permission be, and is hereby, granted to 
the Morris Telephone Company to issue and sell not in excess of Thirty-Two 
Thousand Seven Hundred Dollars ($32,700) of Cumulative Five Per Centum 
(5%) Preferred Stock, par value of One Hundred Dollars ($100), per share 
for the purpose as set forth above. 

This 22nd day of April, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G- Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3971 

APPLICATION FOR INCREASE IN EXCHANGE RATES AT THE 
YANCEYVILLE EXCHANGE OF THE MORRIS TELEPHONE 

COMPANY. 

Order 

In this case the Morris Telephone Company comes before the Commission 
and asks for authority to increase the exchange rates at its exchange at 
Yanceyville and to cancel discount provision in payment of. bills on the grounds 
that the present rates do not produce sufficient revenue to meet operating 
expenses, owing to increases in wages and other operating expenses. 

Witness for the Company testified to the great increased cost in wages and 
other operating expenses and submitted income statement of the Company for 
the year 1946 which showed a deficit of $2,297.83 for the year. He estimated 
that the proposed rate increases would yield about $1,100.00 annually. 

Witness stated tliat Yanceyville was an automatic dial exchange with direct 
toll service, dialing by subscriber, with the Danville, Virginia exchange of the 
Chesapeake and Potomac Telephone Company. Witness said there were three 
trunk lines between the Yanceyville and Danville exchanges and that the 
Company contemplated the addition of another circuit. 

W. B. Horton, Attorney of Yanceyville, filed petition signed by ninety-four 
(94) subscribers who protested the granting of any increase because of the 
poor service which they are now receiving. Mr. Horton stated that the 



Decisions and Adjustments of Complaints 155 

subscribers would not object to a small increase provided they are given good 
service. 

Yanceyville is located approximately twenty-one (21) miles from Roxboro. 
The Morris Telephone Company operates exchanges at Roxboro, Hillsboro and 
Yanceyville. All repairmen are sent out from Roxboro. The applicant is now 
paying an agent in Yanceyville approximately $75.00 per month to receive 
complaints, etc, Mr. Horton, Attorney for the protestants, suggested that a 
repairman be stationed at Yanceyville in lieu of the service now being rendered 
by the agent, and in addition to those duties he would make all minor 
repairs. The Commission thinks very well of this suggestion and is willing 
to give the increases hereinafter outlined with the understanding that service 
is to be improved and that satisfactory service will be rendered. 

It Is, Therefore, Ordered, That effective on billings on and after December 
1, 1947, the Morris Telephone Company is hereby authorized to put into 
effect the following exchange rates per month : 



Business 
Residence 

Rural Multi- Party Rates: 

1 to 3 miles from exchange 
3 to 6 miles from exchange 
6 to 9 miles from exchange 

Beyond 9 miles, 25c per mile or fraction thereof 

Above rates are for handset or other type of instrument and are not 
subject to discount. 

It Is Further Ordered, That this case be, and the same is hereby, retained 

for a period of six months from date of this Order for the purpose of 

permitting the Commission to make any adjustment in said rates the Commission 
may deem necessary. 



Party 2 Party 


4 Party 


$4.00 $3.50 


$3.00 


3.00 2.50 


2.00 


Residence 


Business 


$3.00 


$2.25 


3.25 


2.50 


3.50 


2.75 



This 19th day of November, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 4183 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



RATE INCREASE REQUEST BY NORFOLK AND CAROLINA 
TELEPHONE AND TELEGRAPH COMPANY 

Order 

In this case the Norfolk and Carolina Telephone and Telegraph Company 



156 N. C. Utilities Commission 

comes before the Commission asking for permission to increase its telephone 
exchange rates at its four exchanges. 

In its application the Company declares that the present rates are grossly 
inadequate to meet the constantly increasing operating cost, both in the way 
of labor and material and supplies. 

The application also states that the Company has underway a major 
program of expansion and improvement in its facilities which will require 
large sums of money, and it is pointed out that the Company's ability to 
obtain money at reasonable cost is dependent upon earnings which are sufficient 
to maintain an adequate credit. 

The Company estimates that the proposed rates will give a gross increase in 
revenue of $25,249.80. 

Company witness stated that notwithstanding the growth of the Company's 

business in the last twenty-seven years there has been no increase in the 

exchange rates, which rates were declared to be subnormal when compared 
with rates at other points for like service. 

A major portion of the increase in operating expenses, witness said, resulted 
from wage rates made in conformity with the National policy. The full eflfect 
of these wage increases made last November, he said, were not reflected in 
its 1946 expense exhibits. Wage increases which the Company is now in the 
process of putting into effect will amount to approximately $31,000.00. 

From the showing made by the Company, it is evident to the Commission 
that a rate increase should be authorized but not in the full amount requested. 

The rates and charges, which in the opinion of the Commission should be 
authorized and which will be authorized in the order to follow, will produce 
approximately $22,000.00 additional revenue and will net the Company about 
$13,000.00, after taxes. The said rates are deemed reasonable and compatible 
with the public interest and give the Company a reasonable return on 
investment, therefore. 

It Is Ordered, That the Norfolk and Carolma Telephone and Telegraph 
Company is hereby authorized to put into effect on all billings on and after 
October 1, 1947 exchange rates, extension charges, and mileage charges which 
follow : 

EXCHANGE RATES 

Elizabeth City 

1 Party 2 Party 4 Party Multi-Party 

Business $5.25 $4.25 $3.25 $2.75 

I^esidence 3.00 2.50 2.00 2.00 

Edenton 

Business $4.25 $3.50 $2.75 $2.75 

Residence 3.00 2.50 2.00 2.00 



Decisions and Adjustments of Complaints 157 

Hertford 1 Party 2 Party 4 Party Multi-Party 

Business $4.00 $3.25 $2.50 $2.50 

Residence 3.00 2.50 2.00 2.00 

Manteo 

Business $4.00 $3.25 $2.50 $2.50 

Residence 3.00 2.50 2.00 2.00 

These rates apply for hand set and all other types of instruments. 



EXTENSIONS 

Business Extension " , $1.25 

PBX Extensions $1.25 

Residence Extensions .75 

MILEAGE CHARGES 

Individual line, private branch exchange trunk line, or ringing 



Two party line, per ^ mile or fraction thereof per month each 

main station $ .32c 

Four-Party line, per ^ mile or fraction thereof, per month, 

each main station $ .16c 

Multi- Party (Rural) mileage charges: 

1 to 2 miles from exchange No extra charge 

2 to 4 miles from exchange .25c 

4 to 6 miles from exchange .50c 

6 to 8 miles from exchange .75c 

Thereafter an increase of 50c per month for each zone 
of 2 miles. 

This the 16th day of September, 1947 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 4011 

NORFOLK AND CAROLINA TELEPHONE AND TELEGRAPH 

COMPANY 

INSTALLING DIAL TELEPHONE EXCHANGE AT SUNBURY AND 

FIXING RATES 

Order 
In this case the Norfolk and Carolina Telephone and Telegraph Company 



158 N. C. Utilities Commission 

comes before the Commission and expresses its purpose to install a modern 
telephone exchange of the dial type at Sunbury now being served by magneto 
rural lines; and upon the inauguration of service at said proposed exchange, 
the Company asks for authority to put into effect the following exchange rates 
within the base rate area (within a radius of one mile distant from central 
office located in Sunbury) : 





Individual Line 


2 Party Line 


4 Party Line 


Business 


$4.00 


$3.25 


$2.50 


Residence 


3.00 


2.50 


2.00 



It is quite evident to the Commission that the proposed exchange is in 
the public interest, and that the rates proposed are reasonable and should 
have approval, therefore 

It Is Ordered, That the Norfolk and Carolina Telephone and Telegraph 
Company is hereby authorized to install dial type exchange at Sunbury, North 
Carolina, and upon inauguration of service at said exchange to put into effect 
the exchange rates requested and set forth above. 

This the 18th day of December, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 4261 

APPLICATION OF THE NORFOLK AND CAROLINA TELEPHONE 
AND TELEGRAPH COMPANY TO ISSUE AND SELL BONDS AND 

STOCK. 

Order 

In this case the Norfolk and Carolina Telephone and Telegraph Company 
requests the authority of this Commission to issue and sell 1,000 shares of 
its Common Stock at a par value of $100.00 per share and to issue and sell 
$600,000.00 Principal amount of its First Mortgage Bonds, Series A, 3^ percent, 
dated July 1, 1948, and to mature July 1, 1973. 

The petitioner alleges that it has become necessary for it to make extensive 
expansion in its overall plant, to convert its central office exchange equipment 
at Elizabeth City from manual to automatic operation and to enter into a 
general financial plan for the furtherance of its building program and the 
liquidation of its outstanding obligations, all of which total approximately 
$700,000.00. 

In support of the application, petitioner has attached thereto, and made 
a part of same, financial statements marked Exhibits II, III, and IV. Also 
attached to the application and made a part thereof are copies of Mortgage 
and Deed of Trust, Sales contract. Resolution of Directors, May 25, 1948, 
Resolution of Stockholders, June 7, 1948, and Resolution of Directors, June 17, 
1948, marked as Exhibits V through IX respectively. 



Decisions and Adjustments of Complaints 159 

From a review and study of the full application the Commission finds that 
the proposed issuance and sale of bonds and stock appear to be (a) for a 
lawful object within the corporate purposes of the applicant (b) compatible 
with the public interest (c) necessary or appropriate for or consistent with the 
proper performance by applicant of its service to the public as a utility and 
will not impair its ability to perform that service and (d) are reasonable, 
necessary and appropriate for such purposes, wherefore 

It Is Ordered That the Norfolk and Carolina Telephone and Telegraph 
Company is hereby authorized, empowered and permitted to issue and sell 
$600,000.00 Principal amount of its First Mortgage Bonds, Series A, 3^ percent, 
dated July 1, 1948 and to mature July 1, 1973, and 1,000 shares of its 
Common Stock at a par value of $100.00 per share in accordance with the 
terms, conditions and plans set out in Exhibits V through IX. 

It Is Further Ordered That the proceeds from the sale of said Bonds and 
Stock shall be used for the purposes as proposed in the application. 

This 23rd. day of June, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4435 

APPLICATION OF THE NORTH CASWELL TELEPHONE COMPANY 

FOR A CERTIFICATE OF CONVENIENCE AND NECESSITY TO 

PROVIDE AND MAINTAIN A TELEPHONE EXCHANGE AT 

MILTON, NORTH CAROLINA. 

Order 

In this case the Caswell Telephone Company, a new concern, requests the 
authority to provide and maintain an automatic dial telephone exchange at 
Milton, North Carolina, for the purpose of furnishing telephone service to the 
citizens of Milton and community there around. It is estimated that the 
aggregate plant will cost about $8,000.00. All party line service will feature 
selective ringing. 



The applicant proposes to charge the following rates 



Private Line 2 Party Line 4 Party Line 
Business $4.50 $4.00 $3.25 

Residence 3.75 3.00 2.75 

Extension telephone in the same house or apt. $1.25 

It is stated that these rates are necessary if the company is to show 

a profit and be in position to liquidate its debts in this period of inflation. 

It is further proposed to charge each subscriber a $20.00 installation fee 



160 N. C. Utilities Commission 

which would be credited to the subscriber. On the 18th month, said subscriber 
would be credited with $1.00 on his bill and on each month thereafter 
until on the 38th month that he had been a continuous subscriber he would 
have received the entire installation fee in credit on his monthly statements. 
In no case would any part of the installation fee be refunded in cash. The 
reason for this installation fee, says the applicant, is to insure the success of 
the company. The application states that a survey was made in February of 
this year to determine the extent of demand for telephone service in the area 
involved and it was found that many earnestly desire this service and that 
30 signed for service on the basis of the rates and charges outlined above. 

The Commission finds that there exists in the Town of Milton and community 
the need for telephone service and that the establishment and maintainance of 
an automatic dial telephone exchange at Milton would be both in the interest 
of, and compatible with, the public interest. The Commission also feels that 
the proposed rates and charges are fair and reasonable and are necessary if 
the company is to maintain a sound financial condition and should be authorized, 
wherefore 

It Is Ordered That the Caswell Telephone Company be, and it is hereby, 

granted authority to provide and maintain an automatic dial telephone exchange 

at Milton, North Carolina and to charge the rates and installation fee as above 
proposed. 

It Is Further Ordered That said company adopt and make a part of its 
General Exchange Tariff the General Exchange Tariff which this Commission 
has prescribed for telephone companies whose annual revenue is $50,000.00 or 
less. 

It Is Further Ordered That this order shall constitute a certificate of 
convenience and necessity in accordance with Chapter 455, Public Laws of 
North Carolina, 1931. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 1st day of June, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4411 



INCREASE IN THE EXCHANGE RATES OF THE NORTH STATE 
TELEPHONE COMPANY. 

Order 

In this case the North State Telephone Company comes before the Commission 
and asks for authority to put into effect the following rate schedules at its 
High Point and Thomasville exchanges : 



Decisions and Adjustments of Complaints 161 

High Point 1 Party 2 Party 4 Party 

Business $5.25 $375 

Residence 3.00 $2.00 

Thomasville 

Business $4.50 $3.75 

Residence 2.75 $2.00 • 

According to the apphcation the above proposed rates would increase the 
Company's annual revenue by approximately $30,642.00, gross, and $16,786.67 
net. 

Statement included in application showed that the Company for the three 
months' period — July 1, 1947 to September 30, 1947 — made a net return of 
$12,000.19, a net income of $48,000.36 raised to an annual basis. Computed on 
this basis, using capital stock at basis, the Company's rate of return was 
4.57 per cent. 

The net increase requested, $16,786.67, added to the earning shown by 
three months' period, $48,000.76, would give the Company a net income of 
$64,787,03, a rate return of 6.16% on the basis of capital stock. 

The witness for the petitioner corroborated the financial figures given in 
application which have been used in above illustrations in arriving at present 
and prospective earnings. 

The witness pointed out that the shrinkage in net earnings was due to 
wage increases made not only during the present year but during each year 
for the past five years, and to the cost of material and supplies which, 
witness said, had increased from 30 to 100 per cent, according to items, 
since 1940. 

In further justification for the rates requested the witness said, "The 
continuation of our present inadequate local exchange rates will not permit 
us to maintain our present service, attract new money, and expand an adequate 
telephone service for the people of our territory and would, therefore, be 
contrary to the public interest." 

No one appeared in opposition to the application although the matter was 
fully advertized. 

In view of the Company's presentation and the belief that the exchange 
rates requested are reasonable, the Commission is of the opinion that the 
rate schedules requested should be granted, therefore 

It Is Ordered, That on billings on and after January 1, 1948, the North 
State Telephone Company is hereby authorized to put into effect the exchanges 
rates requested for its exchanges at High Point and Thomasville set forth above. 

This, the 18th day of December, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 3516 



162 N. C. Utilities Commission 

APPLICATION OF THE NORTH STATE TELEPHONE COMPANY 
FOR AUTHORITY TO ISSUE AND SELL COMMON STOCK. 

Order 

In this case the North State Telephone Company requests authority to 
issue and sell the remaining 2500 shares of its authorized Common Capital 
Stock, having a par value of $100.00 per share, at par. 

It is stated in the application that the proceeds realized from the proposed 
stock issue will be invested in the further betterment and expansion of the 
applicant's system, both local and toll. 

From the representations made in the application and from other pertinent 
data available to the Commission, the Commission is of the opinion and so 
finds that the proposed stock issue is compatible with the public interest, is 
necessary, appropriate for and consistent with the proper performance by 
the North State Telephone Company of its service to the public as a utility, 
and that the use of the proceeds to be derived from the sale of said 
securities is reasonably required for the purposes set forth. 

Wherefore It Is Ordered that the North State Telephone Company is 
hereby authorized to issue and sell 2500 shares of Common Capital Stock, 
par value $100.00 per share, at par. 

It Is Further Ordered that the proceeds from such sale shall be used 
for the purposes set out in the application. 
By Order of the Commission. 



This the 15th day of December, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4596 



Decisions and Adjustments of Complaints 163 

CANCELLATION OF FREE TOLL SERVICE AND ADJUSTMENT OF 

EXCHANGE RATES AT OLD TOWN EXCHANGE OF J. LEE 

KEIGER, D/B/A OLD TOWN TELEPHONE COMPANY. 

Order 

APPEARANCES: 

For Petitioner: 
J. Lee Keiger 

For Opposition: 

Harry H. Leake 

For Self: 

F. C. Martel 

In this case the Old Town Telephone Company comes before the Commission 
and asks that it be given authority to cancel the provision whereby subscribers 
at the Old Town exchange of the Company and the subscribers of the Winston- 
Salem exchange of the Southern Bell Telephone and Telegraph Company are 
permitted free and unlimited toll service between said two exchanges and an 
adjustment of present exchange rates to correspond with changed operating 
conditions. 

Witness for petitioner, the owner, testified that free toll service between 
the Old Town exchange and the Winston-Salem exchange should be cancelled 
not only on account of the financial loss it is causing in the operation of the 
exchange but for the reason that it results in poor service, owing to 
overcrowding of toll circuits. This overcrowding, witness said, could be 
readily understood when it is understood that subscribers talk as often as 
they please and as long as they please. Important messages, he stated, were 
at times interfered with or blocked by lengthy casual conversations. 

The witness pointed out that when he acquired the Old Town property ten 
years ago the exchange had only a few subscribers while today it has 200 
subscribers and that the Winston- Salem exchange likewise has grown and now 
has 22,600 subscribers. During his ownership, witness stated that he had 
never received any pay for his services or any dividend from the Company. 
With the exception of only one year, he said, the Company operated at a 
loss and that the extra money needed for operation expenses and improvement 
of plant from time to time was supplied from his personal account. He stated 
he had already, this year, supplied the Company with approximately $15,000.00 
from his personal funds and he thought the time had come when the Company 
should be operated on a business basis. 

A large delegation of subscribers appeared in opposition and a number 
from the delegation gave testimony. All testified that the service was poor 
and all were emphatic in their desire that the free toll service should be 
continued even if it should mean an increase in the exchange rates. These 
stated that they lived near Winston-Salem and they were entitled to service 
equal to that of the Winston- Salem exchange. 



164 N. C. Utilities Commission 

Mr. F. C. Martel testified that he lived four miles from Lewisville and 
that for the past two years the Old Town Telephone service was far from 
satisfactory. In his opinion, the installation of a toll charge would do a 
great deal towards solving the problem provided the monthly rental charges 
were reduced to a fair figure. 

The Commission finds : 

1. That the Old Town Telephone Company is operating at a loss. 

2. That its service is unsatisfactory. 

3. That the operating loss and unsatisfactory service is due in the main 
to free toll service. 

4. That the exchange rate set-up is on an unsound business basis. 
In view of these conditions, the Commission is of the opinion 

1. That the free toll service now in effect should be abrogated and 
standard toll rates apply. 

2. That exchange and mileage rates similar to rates in effect at similar 
exchanges should be provided and authorized by this Commission. 

The applicant in this case has spent approximately $75,000 in the construction 
of telephone line, exchanges, etc., to render a service in this community, 
which service was very much needed. The people living in the community have 
sought telephone service from other companies operating in the general 
vicinity and have been refused. The Commission feels that the applicant has 
done everything reasonable to give to his subscribers good service and has 
done so at personal expense. Had it not been for the investment made by the 
applicant this community would be without service of any kind, and the 
Commission feels that the applicant is entitled to a reasonable return on his 
investment, provided the exchange has been properly managed. 

This Commission has been very much disturbed about the situation for 
sometime and it is of the opinion that the only way satisfactory service 
can be rendered is by placing a toll charge on all calls between the Old 
Town Exchange and the Winston- Salem Exchange of the Southern Bell 
Telephone and Telegraph Company. 

It Is, Therefore, Ordered, That on and after December 1, 1947 the Old 
Town Telephone Company is hereby authorized to 

1. Cancel free toll service between its Old Town exchange and the 
Winston- Salem exchange of the Southern Bell Telephone and Telegraph 
Company and apply a toll charge of 10c per message for initial 
period of five minutes or fraction thereof, and five cents for each 
overtime period of three minutes or fraction thereof. 

2. To put into effect the following rate schedule : 

Old Town Telephone Company 
1. This tariff is subject, except as otherwise provided herein, to the 



Decisions and Adjustments of Complaints 165 

regulations shown in the General Exchange Tariff, which Tariff as it now 
exists, or as may be revised, added to or supplemented by superseding issues, 
is made a part of this Tariff. 

2. The telephone rates specified hereunder, with mileage charges when 
applicable, payable monthly in advance, entitle subscribers to an unlimited 
number of local telephone messages to all stations except public pay stations 
bearing the designation of Old Town Exchange. 

Monthly Rates And Their Application 

A. Within base rate area, i. e. a radius of one mile from Central 
Office exchange, flat rates are quoted as follows: 



Business 


Individual Line 
$4.25 
3.00 


2 Party Line 
$3.50 
2.50 


4 Party Line 


Residence 


$2.00 



B. Outside the base rate area shown above and within the exchange service 
area, the above rates will apply plus established mileage charges as specified 
in General Exchange Tariff. 

C. Extensions : 

Business 
Residence 

D. Rural Multi- Party Rates ; 
to 2 miles from base rate area 
2 to 4 miles from base rate area 
4 to 6 miles from base rate area 
6 to 8 miles from base rate area 
8 to 10 miles from base rate area 

Beyond 10 miles. 25c extra for each mile or fraction thereof. 

E. For other charges, see General Exchange Tariff. 

Old Town Telephone Company Effective; December 1, 1947 

It Is Further Ordered. That this cause be. and the same is hereby, retained 
for a period of six months from the date of this Order for the purpose 
of permitting the Commission to make any adjustment in said rates after the 
Commission has made investigation to ascertain the service rendered. 



51.25 




.75 




Business 


Residence 


$3.00 


$2.00 


3.25 


2.25 


3.S0 


2.50 


3.75 


2.75 


4.0G 


3.00 



This 19th day of November, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 2584 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



166 N. C. Utilities Commission 

CANCELLATION OF FREE TOLL SERVICE AND ADJUSTMENT 

OF EXCHANGE RATES AT THE OLD TOWN TELEPHONE 
EXCHANGE OF J. LEE KEIGER, D/B/A OLD TOWN TELEPHONE 

COMPANY. 

Order 

EXCEPTIONS 

OF 

B. Clyde Shore, J. L. Keaton, 

M. B. Thomas, Carl Sapp et al 

Now comes B. Clyde Shore, J. L. Keaton, M. B. Thomas, Carl Sapp et al 
in behalf of themselves and other subscribers of the Old Town Telephone 
Company and excepts to the order of the Commission in above case issued 
on the 19th day of November, 1947 in the following exceptions: 

I. For Exception No. 1, that the Commission erred in finding that the 
Old Town Telephone Company is operating at a loss. 

II. For their Exception No. 2, that the Commission erred in finding 
that the operating loss and unsatisfactory service is due in the main to free 
toll service. 

III. For their Exception No. 3. that the Commission erred in finding 
that the exchange rate set up is on an unsound business basis. 

IV. For their Exception No. 4, the said subscribers except to the conclusion 
of the Utilities Commission that the free toll service now in effect should 
be abrogated and standard toll rates applied. 

\'. For their Exception No. 5, said subscribers except to the conclusion 
of the Utilities Commission that exchange and mileage rates similar to 
rates in effect at similar exchanges should be provided and authorized by 
the Commission, 

VI. For their Exception No. 6. said subscribers except to the finding 
of the Commission that the applicant, J. Lee Keiger, has spent approximately 
$75,000 in the construction of telephone line, exchanges, etc., to render a 
service in this community, which service was very much needed, 

\^II. For their Exception No. 7, the subscribers say that the Commission 
erred in finding as a fact that they had been refused telephone service by 
other companies in the general vicinity. 

VIII. For their Exception No. 8, said subscribers except to the finding 
of the Commission that the applicant has done everything reasonable to give 
the subscribers good service and has done so at personal expense. 

IX. For their Exception No. 9, said subscribers say that the Commission 
erred in finding that had it not been for the investment made by the 
applicant, this community would be without service of any kind, and that 
the Commission feels that the applicant is entitled to a reasonable return on 



Decisions and Adjustments of Complaints 167 

his investment, this Exception being based on the fact that the exchange 
has not been properly managed. 

X. For their Exception No. 10, said subscribers say that the Commission 
erred in finding that the only way satisfactory service can be rendered is by 
placing a toll charge on all calls between the Old Town exchange and the 
Winston- Salem exchange of the Southern Bell Telephone & Telegraph Company. 

XL For their Exception No. 11, the said subscribers except to the order 
of the Commission cancelling free toll service between the Old Town exchange 
and the Winston- Salem exchange of the Southern Bell Telephone and Telegraph 
Company and applying a toll charge of 10c per message for an initial period 
of 5 minutes or a fraction thereof and $ .05 fur each overtime period of 
three minutes or a fraction thereof. 

XII. For their Exception No. 12, said subscribers say that the Commission 
erred in its order putting into effect the rate schedules set out in the order. 

XIII. For their Exception No. 13, said subscribers further except to the 
failure of the Commission to find the following facts : That the Old Town 
Telephone Company has failed to keep proper records or accounts of investments 
made by it, in equipment and other capital investments ; that the Old Town 
Telephone Company has failed to keep a proper record or account of operating 
expenses ; that the Old Town Telephone Company has failed to keep distinct 
records and accounts as between the personal business affairs of J. Lee Keiger 
and the Old Town Telephone Company's business. 

XIV. For their Exception No. 14, said subscribers say that the Commission 
erred in failing to find as a fact that J. Lee Keiger at the time of 
obtaining rights-of-way or easements over and across lands of said subscribers 
and at or prior to the time he began to operate said exchange, expressly 
agreed with said subscribers that he would continuously operate the exchange 
without any toll charge whatsoever, between the Old Town exchange and the 
Winston- Salem exchange of the Southern Bell Telephone and Telegraph 
Company, and that he would not place more than six telephones on any one line. 

The Commission, after giving careful consideration to said exceptions, finds 
no reason to change or amend said order in this case, therefore, the said 
exceptions are overruled, disallowed and denied-. 

This 16th. day of December, 1947= 

Stanley Winborne, Chairman 
Fred C. HtJNTER, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 2584 



168 



N. C. Utilities Commission 



OLD TOWN TELEPHONE SYSTEM, INC, ROUTE 1, 

WINSTON-SALEM, NORTH CAROLINA 

TO THE OLD TOWN TELEPHONE SYSTEM, INC, ROUTE 1, 

WINSTON-SALEM, N. .C: 

Order 
Whereas, Some seven hundred (700) subscribers and potential subscribers 
of the Old Town Telephone System, Inc, have petitioned the Commission 
for Southern Bell Telephone and Telegraph Company service; 

It Is Hereby Ordered, That the Old Town Telephone System, Inc, appear 
before the Commission in the Commission's Hearing Room at Raleigh, N. C. 
on Monday, July 19, 1948, at ten thirty A. M, and show cause, if any there 
be, why the Petition should not be honored. 
This 2nd day of July, 1948- 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST : 

Chas. Z. Flack, Chief Clerk 
Docket No. 4425 

INCREASE IN EXCHANGE RATES OF PENDER TELEPHONE 

COMPANY 

Order 

In this case the Pender Telephone Company came before the Commission 
requesting authority to increase its one party business rate from $3.50 to $4.00 
and its one party residential rate from $2.50 to $3.00. 

The petition stated that the increase was needed because of increased 
operating expenses and the fact that the Company was operating at no profit. 
The increase in rates, it was said, would produce approximately $600 per 
year. 

It was apparent to the Commission that the company needs additional 
revenue to maintain its financial integrity and that the rates applied for were 
reasonable and in line with rates at similar exchanges, therefore. 

It ts Ordered, that on and after April 1, 1947 the Pender Telephone 
Company is hereby authorized to put into efifect the following rate schedule: 





1 Partv 


2 Party 


4 Party 


Business 


$4.00 


$3.50 




Residence 


3.00 


2.50 


2.00 


URAL MuLTi- Party Service 








Business 


$3.50 






Residence 


2.50 






This 31st. day of March, 1947. 









Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Chas. Z. Flack, Chief Clerk 
Docket No. 3855 



Decisions and Adjustments of Complaints 169 

PENDER TELEPHONE COMPANY 

FURNISHING TELEPHONE SERVICE IN THE AREA LYING ALONG 

U. S. HIGHWAY 421 BETWEEN ROBERT FINKE'S RESIDENCE AND 

LONG CREEK BRIDGE 

Order 

To : Pender Telephone Company. Burgaw. North Carolina. 

Southern Bell Telephone and Telegraph Company 
Charlotte, North Carolina ; 

You are hereby ordered and directed to appear before the North Carolina 
Utilities Commission on Monday, December 6. 1948, at 10:00 A. M., to show 
cause, if any there be, why the Southern Bell Telephone and Telegraph 
Company should not be required to furnish telephone service in the area lying 
along U. S. Highway 421 between Robert Finke's Residence and Long Creek 
Bridge. 

By Order of the Commission, 

This the 23rd day of November, 1948, 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4575 .. 

RATES AND SERVICE OF THE POLK COUNTY TELEPHONE 

COMPANY 

Order 
APPEARANCES 

For Petitioner ; 
T. H. Green 

For Opposition : 

W. M. Spivey, Chamber of Commerce 
Claude O. Smith, Town Manager 

In this caes the Polk County Telephone Company comes before the Commission 
and makes the request that it be granted authority to put into efifect the 
following rate schedule : 

1 Party 2 Party 4 Party 
Business 

Wall Type $4.90 $4.90 

Desk Type 5.60 5.60 

Residence 

Wall Type $3.50 $2.80 $2.80 

Desk Type 4.20 3.50 3.50 



170 N. C. Utilities Commission 

Extensions : Business 

Wall Type $1.40 

Desk Type 2.10 

Extensions : Residence 

Wall Type $ .70 

Desk Type 1.40 

In justification of its request for proposed exchange rates, the application 
sets forth that the company has been operated during the past several 
years at a net loss of its stockholders ; and that in view of the increasing 
cost of labor and material, the operating cost for the present year will be 
substantially increased. 

The application includes information as to salaries and wages paid with the 
notation that these salaries and wages are too low and that increased pay 
for the officers and employees cannot be avoided if the company is to retain 
competent personnel. 

Witness for the applicant gave the operating deficit of the company for 
the calendar year ending December 31, 1946 as $1,246.35. Owing to wage 
increases, which he said must be granted to employees, the deficit for the 
year would be greater. 

Witness for the company reviewed the situation of the telephone company 
and cited the need for additional revenues by submitting data which showed 
that the company operated at a deficit of $1,246.35 and that the company 
this year was operating at a greater loss ; and that in order to keep and 
secure proper personnel, it would be necessary to grant further wage increase 
in the near future. He urged that the rates proposed be granted. 

Witness for the opposition stated frankly that the chief concern of the 
opposition was not the question of rates, but the matter of service. They 
contended that the Company's plant and equipment was not modern and 
should be supplanted with a first class, modern system, and for this reason 
they asked that no rate increases be granted the company until first class, 
modern telephone service should be given. 

After a visit and report of a stafif member of the Commission, who 
visited and inspected the company's plant at Tryon at the request of the 
opposition, the Commission is of the opinion that the subscribers of the 
exchange at Tryon are entitled to and should have a modern system and 
modern equipment. 

It is quite evident from the information before the Commission that nothing 
in past years has been done to modernize the Tryon plant or its equipment 
and there is no indication that the company plans to do so in the future. 
A check into the plant inventory shows that on December 31, 1946, three 
hundred fifty-two of the six hundred thirty-nine stations, more than a majority, 
were of wall type. 

The Commission understands that the subscribers of the Polk County 
Telephone Company exchange not only desire a modern plant and service, 



Decisions and Adjustments of Complaints 171 

but there are those in the community who stand ready to install such a 
system if the present owners will not do so. 

The law is plain that where a utility is not giving the type of service 
desired by its customers and gives no assurance that it will supply the 
type of service desired, it becomes the duty of this Commission to grant 
a Certificate of Convenience and Necessity to an agency which upon application 
will agree to supply the desired service. 

In view of the situation and the law, the Commission is of the opinion 
that unless the Polk County Telephone Company shall, within ninety days 
from date of this order, give definite assurance to this Commission that it 
is in a position to install and will install and maintain a modern type 
of service in lieu of its present system the Commission will consider 
the application of a party or parties who desire to supply the desired service. 

While the Commission is opposed to any appreciable increases in the 
company's rates at this time, there are certain inconsistencies in the present 
rates of the company which the Commission thinks should be adjusted; 
therefore, in the order which is to follow, it will set forth the rates 
which are deemed right and proper under the circumstances. In view of the 
foregoing. 

It Is Ordered That effective August 1, 1947, the Polk County Telephone 
Company is hereby authorized to put into effect the following rate schedule: 

1 Party 2 Party 4 Party 

Business $4.50 $4.00 

Residence 3.10 2.60 $2.10 

Extensions: 

Business $1.25 

Residence .75 

Above rates are for handsets and all other types of instruments, . 
and the differential now in effect on type of instrument is hereby 
cancelled. 

It Is Further Ordered That unless the Polk County Telephone Company 
shall file with this Commission, within ninety days from date of this order, 
a definite statement giving assurance that it will supplant the present magneto 
system with a modern type without undue delay, the Commission will give 
consideration to an applicant who desires to install such plant and service. 



This 22nd. day of July, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 3923 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



172 N. C. Utilities Commission 

SALE OF THE POLK COUNTY TELEPHONE COMPANY 

Order 

This matter comes before the Comrnission on the joint application of the 
Polk County Telephone Company (Polk) and the Thermal Belt Telephone 
Company (Thermal) for a certificate of convenience and necessity authorizing 
the purchase by Thermal and the sale by Polk of the plant and property 
of the latter. 

The following representations are set out in said application : 

(1) That the Polk County Telephone Company, a North Carolina 
Corporation, owns and operates a telephone system extending generally 
throughout a portion of Polk County, State of North Carolina, and an 
adjacent area of South Carolina, including exchanges at Tryon, North 
Carolina, and Landrum, South Carolina, with connecting toll lines. 

(2 J That your applicants entered into an agreement for the sale and 
purchase by the Thermal Belt Telephone Company from the Polk County 
Telephone Company of all of the lines, exchanges, real property, franchises, 
and other personal property and equipment of said Polk County Telephone 
Company for the sum of $75,000, payable $20,000 in cash and $55,000 in 
ten equal annual installments of $5,500 each, with interest at 4% per 
annum, payable annually, on deferred payments. 

Said agreement was in writing in the forms of a memorandum, signed 
by Louis A. Avant for and on behalf of the Polk County Telephone 
Company, and signed by Dr. M. C. Palmer and M. Ryan McCown for 
and on behalf of Thermal Belt Telephone Company, a copy of which is 
attached hereto and hereby made a part of this application. That the 
option contained in said written instrument was duly exercised on behalf 
of the purchaser and $20,000 was paid to the Polk County Telephone 
Company on October 1, 1948. 

(3) That the facilities now afforded the public by the Polk County 
Telephone Company requires considerable expansion, repair, rebuilding, and 
improvement, which said Polk County Telephone Company is financially 
unable to accomplish. That if the aforementioned agreement is consummated, 
the Thermal Belt Telephone Company will incorporate in its construction 
program plans to expand, rebuild, and repair the properties covered by 
the agreement. 

(4) That the proposed sale and purchase will be of advantage to 
the persons to whom service is now being and is to be rendered and in 
the public interest because it will lead to an improvement in service, 
both toll and exchange, due to better maintenance and operating and 
expansion of the telephone facilities. 

(5) That the Thermal Belt Telephone Company filed a certificate of 
incorporation with the Secretary of the State of North Carolina on 
October 8, 1948 and is now duly incorporated with an authorized capital 
stock of $200,000, of which $20,000 has been paid in cash; that the 



Decisions and Adjustments of Complaints 173 

subscribers to said capital stock are representative businessmen and citizens 
in the community served by the above mentioned telephone system, a list 
of said subscribers and the amount paid in being attached hereto and 
hereby made a part of this application. 

That the Thermal Belt Telephone Company proposes to put into effect 
a construction program to expand, rebuild, and repair the properties 
mentioned herein and to improve the service rendered to its patrons, and 
that said improvements will be financed by the sale of additional shares 
of the capital stock up to the amount of the authorized capital; that 
the authorized capital of $200,000 will render the Thermal Belt Telephone 
Company financially able to pay the deferred installments of the purchase 
price and to make said improvements ; that the present subscribers for 
capital stock have indicated a willingness to increase their subscription 
at any time that funds are needed for improvement and expansion of the 
telephone facilities, and a number of other individuals who have not been 
called upon to pay in anything toward the capital stock have made definite 
subscriptions. 

In view of the foregoing representations and in view of other available 

information, the Commission is of the opinion that the acquisition of the 

plant and property of Polk by Thermal would be in the interest of and 
compatible with the public interest and so finds. 

Wherefore It Is Ordered that Thermal is hereby granted authority to 
purchase the telephone plant and property of Polk and Polk is granted authority 
to sell said plant and property to Thermal. 

It Is Further Ordered that Thermal, upon the acquisition of said plant 
and property, shall continue to operate same and continue in effect the present 
rates of Polk. 

It Is Further Ordered that this order shall constitute a certificate of 
convenience and necessity in accordance with Chapter 455, public Laws of 
North Carolina, 1931. 

It Is Further Ordered that nothing in this order shall be construed as a 
finding by the Commission of value for purposes of rate making. 

By Order of the Commission. 

This the 22nd day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4567 



174 N. C. Utilities Commission 

INCREASE IN THE EXCHANGE RATES OF THE ROBBINSVILLE 
TELEPHONE COMPANY. 

Order 

In this case the Robbinsville Telephone Company makes appHcation for 
authority to increase its exchange rates. 

In its application the Company states that the high cost of labor and 
material makes an increase in rates necessary in order for the Company to 
continue to give service. 



The rates proposed are as follows : 



Party 


2 Party 


$3.75 


$3.25 


$2.50 


$2.00 



4 Party 



Business 

Residence $2.50 $2.00 $1.75 

No one appeared in opposition. 

From data submitted and the reports on file with the Commission it was 
apparent to this Commission that the Company needed additional revenue to 
continue its operations on a sound basis and that the rates proposed were 
reasonable and in line with the rates at similar exchanges and should be 
authorized; therefore, 

It Is Ordered: That on and after February 1, 1947, the Robbinsville 
Telephone Company is hereby authorized to put into effect the following 
exchange rates : 

1 Party 2 Party 4 Party 

Business $3.75 $3.25 

Residence $2.50 $2.00 $1.75 

This, the 31st day of December, 1946. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3676 



Decisions and Adjustments of Complaints 175 

INCREASE IN EXCHANGE RATES OF ROWAN TELEPHONE 

COMPANY 

Order 
APPEARANCES: 

For the Applicant : 
J. E. Fisher 
S. J. Stutt 

Opposition : 
None 

In this case the Rowan Telephone Company comes before the Commission 
and asks that it be permitted to increase its exchange rates by putting into 
effect the following rate schedule in lieu of present one : 

1 Party 2 Party 4 Party 

Business $4.50 $3.75 

Residence 2.50 2.25 $2.00 

Witness for the Company testified that last year the revenue of the 
Company was $11,583.15 and expenses, including nothing for manager's salary, 
was $12,407.60, which produces a loss of $824.45. 

"The total receipts for the first quarter of 1947," witness said, "were 
$3,212.08; the total expenses, $5,013.66, making a net loss for the first 
quarter of 1947 $1,801.57." 

According to the testimony, no dividends had ever been paid. The Company's 
investment was given as $44,000.00. 

An increase in revenue, witness asserted, was absolutely necessary to 
assure continued operation of the exchanges. 

Witness also pointed out that the three exchanges were of the automatic 
dial type and that subscribers at each exchange had access to the exchange 
service of the other two exchanges without toll charge. 

No one appeared at the hearing in opposition, however, prior to the hearing 
the Commission received several letters from subscribers which complained 
about poor service and expressed the view that no increase in rates should 
be granted until the service was improved. 

These letters were exhibited at the hearing and given consideration. 

The Company admitted that there had been times when its service was 
poor, but this condition had been due, witness pointed out, to the Company's 
inability to get necessary material and employees. 

The testimony adduced by the Company witness and the records in this 
office show conclusively that the Company needs additional revenue to justify 
the continued operation of its exchanges. 



176 N. C. Utilities Commission 

In view of the subnormal rates now in effect by the Company — $3.00 
for individual line business and $2.00 for individual line residence — and the 
testimony of witness that the management is getting nothing for its services 
and the owners no return on investment, the letters of protest cannot be 
given weight. The rates for type of service rendered are, in the opinion 
of the Commission, reasonable and should be allowed, therefore 

It Is Ordered, That effective August 1, 1947, the Rowan Telephone Company 
is hereby authorized to put into effect the exchange rates at its exchanges 
at Granite Quarry, Rockwell and Faith as requested and set forth above. 



This, the 7th day of July, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 4026 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



INCREASE IN THE EXCHANGE RATES AND MISCELLANEOUS 

CHARGES OF THE SOUTHERN BELL TELEPHONE AND 

TELEGRAPH COMPANY. 



Order 
APPEARANCES : 
For Petitioner : 

R. R. Stubbs 
H. G. Booth 
Jefferson Davis 
E. H. Wasson 
Fred J. Turner 

For Protestants : 

H. C. Wilson, City of Greensboro 
Ben Cone, City of Greensboro 

Pursuant to the order of the Commission issued on November 23, 1946, 
the Southern Bell Telephone and Telegraph Company comes before the 
Commission and asks that it be granted a further increase in its exchange 
rates and for an increase in its charges for certain miscellaneous equipment. 

In its application petitioner declares : 

"Since the date of the Commission's order of November 23, 1946, conditions 
have materially changed, and factors beyond movant's control but which affect 
the cost of furnishing telephone service have continued and still continue to 
operate with an increasing force so as to further depress movant's intrastate 
earnings in North Carolina." 

The strike settlement reached in May on the strike which extended from 
April 7 to May 10, 1947, it is said, increased the Company's wage cost 



Decisions and Adjustments of Complaints 177 

assignable to intrastate operating expenses in North Carolina by approximately 
$550,000 per year. 

It is also stated that there has been a sharp increase in the prices 
of material, equipment and supplies used or useful in furnishing intrastate 
telephone service in North Carolina. 

The financial statements filed by the Company in its application and at the 
hearing did not, in the opinion of the Commission, give a clear-cut picture 
of the earnings of the Company as these statements were for only a part 
of the year 1947 and included a period in which the wage increases were 
not in efifect and the strike was in effect. 

At the request of the Commission, the Company furnished income statements 
for the calendar year 1947 in its entirety. 

The statements give the following information : 

Combined interstate and intrastate operations : 

Capital Stock equity ^ $22,340,060 

Gross investment ^ 51,114,790 

Depreciation Reserve 11,842,254 

Net investment ■ 39,272,536 

Net Income 877,263 

Intrastate Portion : 

Capital Stock equity ■ $18,361,193 

Gross investment 42,053,698 

Depreciation Reserve 9,775,781 

Net Investment 32,277,917 

Net Income 647,517 

Another statement on intrastate operation gave the net income for the 
periods, January to June 1947 inclusive, and the period for the last six 
months of 1947. 

For the first six months the net income was shown as $323,545 and the 
last six months as $323,972, giving a total for the year of $647,517, same 
as shown in the other statement just referred to. 

The new rates proposed by the Company, it is estimated, would increase 
the Company's gross revenue by approximately $680,000 a year. This estimated 
amount when stripped of Federal and State income taxes and the state's 6% 
gross receipts tax would give the Company a net amount of only $372,504. 

This net amount added to the present income of the Company, shown in 
combined statement for the year 1947, would produce a net income of $1,249,769. 
jBased on the capital equity ($22,340,060) the above net income would give 
the Company a return of 5.59%, which is not an unreasonable amount. 

The witness for petitioner testified that conditions had materially changed 
smce the rate increase granted by the Commission in its order of November 23, 
1946. 



178 N. C. Utilities Commission 

He testified to the strike of the employees of the Company in April-May 
last which brought about a wage increase to the Company in North Carolina 
of $550,000 on an annual basis. 

He also testified that other operating expenses of the Company had 
greatly increased and thus had greatly depressed the earnings of the Company 
to such an extent that the rates requested were absolutely necessary if the 
Company was to continue to provide adequate service and to be put in 
position to procure new money needed to provide for the great expansion 
program in North Carolina. He presented exhibits which showed that the 
Company's net operating income earnings, under the schedules proposed, 
would not give an unreasonable return on investment. These statements showed 
that on the basis of net average investment the net operating income return 
would be 5.34% and based on invested capital the net operating income return 
would be 5.05%. 

The witness, under a rigid cross-examination, went minutely into financial 
condition of the Company. 

Messrs. Wilson and Cone, Greensboro representatives, stated that they were 
not opposing some rate increase by the Company but they were opposed to 
the "Cross the board" increase proposed by the Company for the reason that 
the two party and four party rates were increased by a greater percentage 
than the single line rates. 

There were no other protestants at the hearing. 

In considering this case the Commission is forced to take cognizance of 
conditions not only in North Carolina but in the other eight states served by 
the Southern Bell as the Company's ability to successfully operate in this 
State depends upon the integrity of the Company in its corporate capacity, 
which is marred or promoted by the action of individual states. It is therefore 
apparent that what is being done or what is not being done in the other 
states with which this State is linked in a corporate capacity is of vital concern 
to this Commission. 

Official data available to this Commission shows that in three of the 
nine states in which the Bell operates, the Company is operating in the 
red and in some other states is on the border line. 

This statement shows the net income for the first nine months of 1947, 
raised to an annual basis, gives the Company a net income of $3,372,422. On 
the basis of Capital Stock ($210,000,000) this would give a return of 1.6%, 
and on average investless depreciation ($381,304,273) a return of only 0.84%. 

This situation is giving this Commission grave concern because it is 
obvious to this Commission that a Company in this plight is not in a 
position to get new money needed for its unprecedented expansion program 
by the sale of stock or bond issues. It is, therefore, apparent to this Commission 
that unless the several regulatory bodies, including this Commission, do not 
provide rates which will provide a fair profit to the Company the expansion 
program needed will be crippled or negated. While this Commission will 
provide rates which it deems adequate in this case, it wants it emphatically 



Decisions and Adjustments of Complaints 179 

understood that it is unalterably opposed to granting the Company any 

increase in revenue for the purpose of subsidizing any losses which are 

sustained or may be sustained in any other state or states in which the 
Company operates. 

It must be kept in mind that telephone service is different from that 
rendered by any other utility in that all parts of the country are interconnected, 
people in this State talk to people in other states; people in other states 
talk to people in this State, and if the service in any state through which 
their conversation is transmitted is poor, the whole service is poor just as 
no chain can be stronger than its weakest link. 

In North Carolina the expansion program for this year calls for the 
expenditure of $15,081,000. This fund contemplates the building of additions 
to outside plants, new buildings and land, central office equipment, pole lines, 
installation of stations, and additional toll circuits. Thirty-five thousand appli- 
cations for service were pending on January 1, 1948. 

The people of North Carolina are clamoring for this needed expansion 
and this Commission is anxious to see it carried out, believing that the increased 
facilities would add millions of dollars of profits to the business and other 
interests of North Carolina, while the crippling of the proposed expansion 
program would no doubt mean the loss of millions of dollars to the people 
of the state. 

In view of the water-logged situation presented above, this Commission is 
anxiously willing to cooperate with every state involved in any effort to 
provide rates which will assure the Company a fair profit. A contrary course, 
in the opinion of the Commission, would be like killing the goose that lays 
the golden egg for it is obvious to even the novice that unless the Company 
is put in a position to give good service and provide the necessary expansion 
the result would be disastrous, not only to the Company but to the public 
as well. 

The Commission was impressed by the opposition expressed by the Greensboro 
representatives against the "Cross the board" increase employed by the Company, 
but as a deviation from the method employed would have necessitated an 
increase in many of the single line rates the Commission did not consider 
it legal to increase any rate higher than that requested by the Company 
and which had been duly advertised. 

In its former order the Commission expressed the opinion that additional 
revenue could be obtained by the Company if a fairer division in toll charges 
between the parent company, the American Telephone and Telegraph Company, 
and the applicant, was put into effect but as stated then, this is a matter 
over which this Commission has no control, the power in this respect being 
vested in the F. C. C. 

The Commission, however, notes with satisfaction that since its order of 
last November a greater division in toll charges has been given to subsidiaries 
and connecting companies and we still believe that the parent company is 
getting a larger share of toll revenue than it should. 



180 



N. C. Utilities Commission 



In view of the above, the Commission is of the opinion that the rates 
and charges requested by the petitioner, which are considered reasonable, 
should be granted; therefore 

It Is Ordered That on bills on and after February 1, 1948, the Southern 
Bell Telephone and Telegraph Company is hereby granted authority to put 
into effect the exchange rates and miscellaneous charges which follow : 

EXCHANGE RATES 







Residence 




Rural 






One- 


Two- 


Four- 






Exchange 


Party 


Party 


Party 


Business 


Residence 


Apex 


$2.25 


$2.00 


$1.75 


$2.25 


$1.75 


Arden 


2.50 


2.00 


.1.75 


2.50 


1.75 


Asheville 


3.40 


2.90 


2.15 


3.25 


2.25 


Belmont 


2.50 


2.25 


1.75 


2.75 


2.00 


Bessemer City 


2.25 


2.00 


1.75 


2,25 


1.75 


Black Mountain 


2.50 


2.25 


1.75 


2.50 


1.75 


Blowing Rock 


2.50 


2.25 


2.00 


2.50 


2.00 


Boone 


2.25 


1.75 




2.25 


1.75 


Burlington 


2.75 


2.25 


1.75 


2.75 


2.00 


(Haw River Area) 


3.25 


2.75 


2.25 






Canton 


2.50 


2.25 


1.75 


2.50 


1.75 


Caroleen 


2.25 


2.00 


1.75 


2.25 


1.75 


Carolina Beach 


2.50 


2.00 


1.75 


2.50 


1.75 


Cary 


2.25 


2.00 


1.75 


2.25 


1.75 


Charlotte 


3.75 


3.25 


2.50 


3.50 


2.50 


Cherryville 


2.50 


2.00 


1.75 


2.50 


1.75 


Cleveland 


2.25 


2.00 


1.75 


2.25 


1.50 


Davidson 


2.50 


2.25 


1.75 


2.50 


1.75 


Fairmont 


2.25 


2.00 


1.75 


2.25 


1.75 


Forest City 


2.50 


2.25 


1.75 


2.75 


1.75 


Garner 


4.50 


4.00 


3.25 


4.00 


2.75 


Gastonia 


2.75 


2.25 


1.75 


2.75 


2.00 


Gibson 


2.00 


1.75 


1.75 


2.25 


1.75 


Goldsboro 


2.75 


2.25 


1.75 


2.50 


2.00 


Greensboro 


3.40 


2.90 


2.15 


3.25 


2.25 


Grover 


2.00 


1.75 


1.75 


2.00 


1.75 


Hamlet 


2.50 


2.00 


1.75 


2.50 


1.75 


Hendersonville 


2.50 


2.00 


1.75 


3.00 


2.25 


Huntersville 


2.2S 


2.00 


-....,. 


2.25 


1.75 


Kings Mountain 


2.50 


2.00 


1.75 


2.50 


1.75 


Laurinburg 


2.50 


2.25 


1.75 


2.50 


1.75 


Lenoir 


2.50 


2.25 


1.75 


2.50 


2.00 


Lincolnton 


2.50 


2.00 


1.75 


2.50 


1.75 


Lumberton 


2.50 


2.00 


1.75 


2.50 


1.75 


Maiden 


2.25 


2.00 




2.25 


1.75 


Morganton 


2.50 


2.00 


1.75 


2.50 


1.75 



Decisions and Adjustments of Complaints 



181 



Mt. Holly 


2.50 


2.00 


1.75 


2.50 


1.75 


Mt. Olive 


2.25 


2.00 


1.75 


2.25 


1.75 


Murphy 


2.50 


2.25 


1.75 


2.50 


1.75 


Newland 


2.00 


. _.. 


1.75 


2.00 


1.75 


Newton 


2.25 


1.75 


1.75 


2.75 


2.25 


Pembroke 


2.50 


2.00 




2.50 


1.75 


Raleigh 


3.40 


2.90 


2.15 


3.25 


2.25 


Reidsville 


2.50 


2.25 


2.00 


2.50 


2.00 


Rockingham 


2.50 


2.00 


1.75 


2.50 


1.75 


Rowland 


2.00 


1.75 


1.75 


2.00 


1.75 


Rutherfordton 


2.50 


2.25 


1.75 


2.75 


1.75 


Salisbury 


3.00 


2.50 


2.00 


3.25 


2.25 


Selma 


2.50 


2.00 


1.75 


2.50 


1.75 


Shelby 


2.50 


2.25 


1.75 


2.50 


2.00 


Southport 


2.25 


2.00 


1.75 


2.25 


1.75 


Spruce Pine 


2.25 


2.00 


1.75 


2.25 


1.75 


Statesville 


2.75 


2.25 


1.75 


2.75 


2.00 


Stony Point 


2.25 


2.00 


175 


2.25 


1.75 


Taylors ville 


2.50 


2.00 


1.75 


2.50 


1.75 


(Hiddenite) 




_-.____ 


3.50 






Troutmans 


2.25 


2.00 


1.75 


2.25 


1.75 


Waco 


2.00 


1.75 




2.00 


1.75 


Waynesville 


2.50 


2.00 


1.75 


2.50 


1.75 


(L. Junaluska) 


5.65 


3.60 


2.55 







Wendell 


2.25 


2.00 


1.75 


2.25 


1.75 


(Eagle Rock) 






2.25 






Wilmington 


3.25 


2.75 


1.75 


3.25 


2.25 


Winston- Salem 


3.40 


2.90 


2.15 


3.25 


2.25 


Wrightsville Beach 


3.50 


3.00 


2.50 


3.50 


2.25 


Zebulon 


2.25 


2.00 


1.75 


2.50 


1.75 



Service Connection Charges 



Instrumentalities Not in Place 



Exchange Grouping — Station Basis 
0-2000 2001-10000 10001-25000 Over 25000 



Each Bus. Main Station or 

PBX Trunk $2.75 

Each Res. Main Station or 

PBX Trunk 2.50 

Each Bus. Extension or PBX Station 1.50 
Each Res. Extension or PBX Station 1.25 

Instrumentalities in Place 

For entire service or any 

instrument utilized 1.25 

For the reconnection of private branch 
exchange stations, each station.- 1.25 



$3.00 

2.75 

1.75 
1.50 



1.50 



1.50 



$3.50 

3.00 

2.00 
1.75 



1.75 



1.75 



$5.00 

3.50 

2.25 
2.00 



2.00 
2.00 



182 N= C. Utilities Commission 

Inside Moves and Change Charges: 

Exchange Grouping — Station Basis 
0-2000 2001-10000 10001-25000 Over 25000 
For moving each main station, 
extension station, or private 
branch exchange station $1.25 $1.50 $1.75 $2.00 

For change in style or type of 

telephone set 1.25 1.50 1.75 2.00 

Private Branch Exchange Equipment Rates : 

Manual Systems 

Class A 

3 line, 7 station switchboard, battery power, and ringing circuit $6.00 

5 line, 12 station switchboard, battery power, and ringing circuit 9.00 

Class B, per position (rates include switchboard, battery power, and 
ringing curcuit) 

30 lines or less in use - $10.00 

31 to 100 lines in use 15.00 

101 to 200 lines in use 20.00 

Over 200 lines in use 25.00 

Class C, per position (rates include switchboard, battery power, and 
ringing circuit) 

Modified non-multiple section $40.00 

Regular multiple section 50.00 

Dial Systems 

Key Switchboard Systems 

740-A and 740-B PBX's 

Attendant's cabinet and one dial desk or hand set, each $17.50 

Selector — • Connectors, each 3.00 

Trunk equipments, each 2.50 

Dial tie-line equipments, to be selected, each 2.50 

Power plant and common equipment 25.00 

740-C 

Attendant's position and one dial desk or hand set each $20.00 

Selector — Connectors, each 3.00 

Trunk equipments, each 3.00 

Power plant and common equipment 25.00 

Dial Key Station Systems 
750-A and 755-A 

Common equipment, including power plant -$25.00 

Dial station line terminals, in use .50 

Key equipment, per station .50 



I 



Decisions and Adjustments of Complaints 183 

Dial Cord Switchboard Systems 

701-A, 711-A and 740-AX 

Non-multiple switchboard positions, each $25.00 

Multiple switchboard positions, each 45.00 

Selectors, connectors, or selector-connectors, each 3.00 

Dial station line terminals, in use 50 

Power Plant 45.00 

Dial tie line terminals 

To be selected, each 2.50 

To select and to be selected, each 4.00 

Key System and Miscellaneous Items of Equipment Rates : 

100 Key Equipment 

Line equipment cabinet 

3 lines in use $4.50 

4 to 6 lines in use - 7.00 

Key boxes 

3 line, single sided $2.25 

3 line, double sided 2.75 

6 line, single sided 3.00 

6 line, double sided - -. 3.50 

Intercommunicating line 1 .00 

101 Key Equipment 

Non-secretarial and Full Secretarial 

First key box, each position ___.$ 8.00 

Additional key boxes 3.50 

Common equipment 10.00 

Line equipment 

Non-secretarial — central office and P. B. X. station line .,-- 

Full secretarial — central office and P. B. X. station line 1.25 

Private line, ring down .75 

Private line, automatic to 100 or 101 key equipment 1.25 

Private line automatic to P. B. X. or, battery set -_..._ .75 

Secretarial Pick-up 

Each unit key box $ 3.00 

Common equipment 10.00 

Central Office and P. B. X. station line equipments .35 

Intercommunicating line 1 .00 

Ringdown Current for Signaling over Private Lines 1.50 

109- A Key Equipment 

6-Button key $ 3.00 

Line equipments, each LOO 

Holding, per line .40 



184 N. C. Utilities Commission 

4-A Key Equipment 

Without hold, each key $ .60 

With hold, each key .75 

103-xA. Key Equipment 

10 line capacity '. $ 4.00 

20 line capacity 7.00 

30 line capacity 11.00 

40 line capacity 14.00 

102-A Key Equipment 

Common equipment $10.00 

First key box. each position 

Type 1 9X)0 

Type 2 SlX) 

Additional key boxes 

Type 1 : 4.00 

Type 2 3.50 

Additional attendant jacks .25 

Voice recorder relays .75 

Line equipments : 

Central Office and P. B. X. 

Non-secretarial 

Secretarial 1 .25 

Private line intra-airport 

Non-conference .60 

Conference — non-dial 1.25 

Conference — 4 point dial 4.00 

Conference — 9 point dial 5.00 

Alulti- station — lamp signaling 1.50 

Multi-station — Loudspeaker signaling .50 

Private line — interexchange 

To loudspeaker stations 1.25 

Per line per position (in addition to above) .75 

To other key equipments 1.50 

Per line per position (in addition to above) 75 

Cut-off at Airport stations 2.50 

Loudspeaker Volume control key .50 

3-Way key at "C" positions .75 

Selective signaling — A & F pos. - - - 2.50 

Timing register equipment 

Common equipment 7.00 

Register and relay, per pair .65 



Decisions and Adjustments of Complaints 185 

1-A Key Telephone System 

Pick-up - $ -25 

Holding 

Per line equipped .40 

Per station equipped .25 

Intercommunicating, per line 1.00 

Two-way automatic signaling for an intercommunicating line ,40 

Cut-off, or Cut-off and Ringer Transfer : 

Manual operation and restoral per station equipped $ .25 

Exception : When the key and the bell which is to be cut off 
are located at the telephone and no other service feature is 
involved at that telephone, an installation charge of $1.50, 
but no monthly charge shall apply. 

Exclusion : 

Manual operation and automatic restoral, per telephone 

equipped .25i 

Automatic, per line equipped 1.00 

Signaling : 

For central office or P. B. X. station lines, control units for 

Non-continuous line signals 1.00 

Continuous line signals 1.25 

Busy lamps 1 .00 

Local signaling 

Signaling keys in base of set, each $ .15 

Buzzers, each .20 

Combined code and selective signaling unit .50 

Ringdown private line terminations 1,50 

2-A Key Telephone System 

Loudspeaker — microphone cabinet including buzzer, talking key, 
signaling key, associated amplifier unit, intercommunicating 
line, and transfer key $ 3.50 

Wiring Plans 

Charges for wiring plans to be based on features involved. Rates 
to be same as for 1-A key systems features. 
Telephone set for explosive atmosphere $ 4.00 

Signals for explosive atmosphere 

Control equipment $ 2.25 

8" or 10" bell — indoor 2.00 

— outdoor 2,50 

Operators' sets 

Single head receiver $ .50 

Double head receivers .65 



186 N. C, Utilities Commission 

Head receivers — Watch case $ .15 

— Single 25 

— Double .40 

Jack and plug equipment Installation Charge $ 5.00 

Long Cords 

9 Ft. - Installation Charge 2.00 

13 Ft. Installation Charge 3.00 

Code Call Systems 
Code sending sets 

Manual — lA and IB systems 

10 Code $ 4.50 

20 Code „. 5.00 

40 Code ,.„. 6.50 

60 Code 7.00 

Dial — 3A systems 

Code sending unit — 1 path 8.00 

Installation Charge 60.00 

Add'l talk paths 2.50 

Switchboard appearance — each path 1.25 

Slow operation of sigs .35 

Signals 

lA System 

4 in. bell — indoor .35 

6 in. bell — indoor .40 

10 in. bell — indoor .75 

980 cycle chime — indoor .50 

490 cycle chime — indoor 1.50 

245 cycle chime — indoor 1.75 

Horn — indoor .50 

10 in. bell — outdoor 1.00 

Horn — • outdoor .75 

3 A and IB systems 

4 in. bell — indoor 1.00 

6 in. bell — indoor 1.00 

10 in. bell — indoor 1.15 

980 cycle chime — indoor 1.10 

490 cycle — indoor 1.75 

245 cycle chime — indoor - 2.00 

Horn — indoor 1.15 

10 in. bell — outdoor 2.00 

Horn — outdoor 2.00 

Station Auxiliary Signals 

Continuous control equipment (Auto or push button release $ .25 



Decisions and Adjustments of Complaints 187 

Non-continuous control equipment 1.00 

Busy lamp control equipment 1.00 

3 in. bell .30 

6 in. bell .40 

10 in. bell — ■ indoor .75 

Horn — indoor .50 

14A lamp indicator _. .40 

15A lamp indicator .30 

16A lamp indicator — 50 

17A lamp indicator .50 

18A lamp indicator .75 

20A lamp indicator .75 

Extension Bells 

Ordinary $ .30 

Loud Ringing .50 

Order Turrets 

Number 1 $ 2.50 

Installation Charge 15.00 

Number 2 

Four position turrets, each 30.00 

Installation Charge 100.00 

Extra multiple jack equipment for 20 additional lines 2.00 

Number 4 3.50 

Installation Charge 25.00 

Loudspeaker Paging Systems 

No. 103-C or B type amplifier 7.50 

Installation Charge 10.00 

No. 92-B or 103-D type amplifier 10.00 

Installation Charge 10.00 

Pay Station Commission : 

Public telephones — 15% on all receipts. 

Semi-public telephones — 20% on local revenues above guarantee. 

This, the 30th day of January. 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
Chas, Z, Flack, Chief Clerk 
Docket No. 3763 

AMENDMENT 

The Commission's order in the Southern Bell Telephone and Telegraph 
Company's case, Docket No. 3763, issued on January 30, 1948, is hereby 
amended by striking out "do not" in line 22, page 3, of said order. 

This the 13th day of February, 1948. 

By Order Of The Commission 

Chas. Z. Flack, Chief Clerk 
Docket No. 3763 



188 N. C. Utilities Commission 

FIXING INTRASTATE TELEPHONE TOLL RATES 

Order 

APPEARANCES: 

L. W. Hill, Carolina Telephone and Telegraph Company, 

J. F. Havens, Carolina Telephone and Telegraph Company, 

George W. Thompson, Central Carolina Telephone Company. 

John E. Cline, Central Carolina Telephone Company, 

L. D. Densmore, Central Telephone Company, 

Ralph Van Trine, Durham Telephone Company, 

H. W. Dewey, The Norfolk &- Carolina Tel. & Tel. Company, 

Robbins Tilden, North State Telephone Company, 

Clyde A. Shreve, Subscribers of Summerfield, Stokesdale. 

and Oak Ridge served by Central Carolina Telephone Co. 

This matter came before the Commission in order that it might be determined 
whether the uniformity in telephone toll rates throughout the State should be 
continued. 

Many times during the past years the Southern Bell Telephone Company 
has, as a result of conferences with the Commission, agreed to a reduction 
in its toll charges, after which the independent telephone companies, at the 
request of the Commission, have likewise reduced their toll charges making 
the toll rates throughout the State the same. When recently the Southern 
Bell Telephone Company filed a petition with the Commission requesting, 
among other things, a five cents basic charge per message increase in toll 
charges between certain mileage brackets, the Commission was likewise requested 
by the independent telephone companies in various parts of the State for a 
like increase in toll rates. Rather than to have a multiplicity of hearings, 
the Commission gave notice through the press that it would hear and pass 
upon the request of the independent telephone companies at the same time, 
and a Jiearing was had on December 30, 1946. At said hearing it was 
made affirmatively to appear that if the toll rates were not made uniform 
great confusion would result. Many of the independent companies connected 
with the Southern Bell Telephone Company have reciprocal arrangements 
whereby the Southern Bell Telephone Company collected the toll in one 
direction and the independent telephone companies in the other direction, 
and if the toll charges were not made the same the rates would be diflferent 
in different directions between the same points. Furthermore, it was shown 
that many messages were routed partly over the lines of the Southern Bell 
Telephone and Telegraph Company and partly over the lines of the independent 
telephone companies and that if the rates were diflferent there would be 
confusion and inaccuracies in determining and prorating the total toll charge. 

In addition to the above reasons recited, it was contended and evidence 
offered in substantuation of the contention, that the independent telephone 
companies, like the Southern Bell Telephone Company, had had an enormous 
increase in operating expenses due to sky-rocketing material cost and increase 
in the cost of labor, the culmination of which, it was contended, in the 
opinion of the independent telephone operators, had not yet been reached, 



Decisions and Adjustments of Complaints 189 

and that this great increase in operating expenses far exceeded the small 
amount of revenue which independent telephone companies would receive by 
a five cents basic charge per message increase in toll rates. Many of the 
independent companies, it was pointed out, have few and in some cases no 
long distance lines and, therefore, their profit from the increase in toll rates 
would be either negligible or nil. 

It was further contended that uniformity in toll rates should be maintained 
and should the Commission find that anyone particular company was making 
more than a fair return that its rental rates should be reduced rather than disturb 
the uniformity in toll rates. 

The representative of the subscribers of the Summerfield exchange of the Cen- 
tral Carolina Telephone Company did not oppose the proposed toll rate increase 
in general but opposed the grant of any increase in such rates to the Central 
Carolina Telephone Company until their service was improved. 

From the testimony adduced and the date submitted the Commission is of the 
opinion that uniformity in intrastate toll rates should be maintained and that the 
intrastate toll rates of all independent telephone companies in the State under the 
jurisdiction of this Commission should be the same as the rates authorized for 
the Southern Bell Telephone and Telegraph Company in the Commission's 
order of November 23, 1946; however, in view of the abnormal, unsettled finan- 
cial and labor conditions, heightened by growing inflation, which not only prevail 
in North Carolina but throughout the nation, the Commission is of the opinion 
that the rates fixed by this order should be provided on a temporary basis and 
that the order of the Commission should continue open for fourteen months from 
December 31, 1946, with the right of the Commission reserved to make adjust- 
ments in said rates at any time during this period as in its opinion conditions 
should justify. 

Special toll charges or special toll arrangements in effect at certain exchanges 
or between certain exchanges in the State are not affected by this proceeding. 

In view of the foregoing, therefore, 

It Is Ordered: That, effective January 1, 1947, the intrastate toll rates autho- 
rized' for the Southern Bell Telephone and Telegraph Company in the Com- 
mission's order of November 23, 1946, which follow, shall apply to all telephone 
companies in the State under the jurisdiction of the Commission in lieu of present 
rates : 

SOUTHERN BELL TELEPHONE & TELEGRAPH COMPANY 
DIAL SYSTEM AND EXCHANGE RATES AT WRIGHTSVILLE 

BEACH 



Order 

In this case the Southern Bell Telephone and Telegraph Company comes 
before the Commission and asks that the following rate schedule be authorized 
and effective at Wrightsville Beach, N. C. upon the billing dates next 



190 N. C. Utilities Commission 

succeeding the completion of dial system and the furnishing of dial service 
at said exchange. 

1 Party 2 Party 4 Party 

Business $6.00 $5.25 $4.50 

Residence 3.25 2.75 2.25 

MuLTi- Party Rural 

Business $3.25 

Residence 2.00 

Seasonal Service 

Service for the first month, or fraction thereof, three times the monthly 
schedule rates ; for the second month, or fraction thereof, two times the 
monthly schedule rates, and for each additional month the monthly rate 
will apply, provided that the total charge for service furnished continuously 
during the period of twelve consecutive months next following the date 
of installation, shall not exceed the amount of twelve months' charge for the 
service furnished at the monthly schedule rate. 

Semi-Public Telephone Service 

Daily guarantee of revenue from local messages, 20c 

Accompanying the application is a copy of a resolution passed by the Town 
Council of the Town of Wrightsville Beach which reads as follows : 

"Wherefore, The Town Council of Wrightsville Beach, N. C. is desirous 
of obtaining a more modern and up-to-date telephone system for the Town of 
Wrightsville Beach, N. C, and 

"Wherefore, the matter of obtaining a more modern telephone system of 
the latest type and design, known to the Telephone Company as Community 
Dial equipment, and substituting the aforesaid Community Dial System for 
the System now presently in operation and furnishing service to the present 
subscribers of the Telephone Company's Wrightsville Beach Exchange, has 
been under discussion over a period of time between the Council and 
representatives of the Southern Bell Telephone and Telegraph Company, and 

"Wherefore, the Southern Bell Telephone and Telegraph Company has 
made representations to the Council to accede to the request for the installation 
of a complete new dial system to replace its present system now serving 
its Wrightsville Beach, N. C. exchange, will require the expenditure of an 
amount of money on the part of the said Telephone Company not justified 
by the schedule of rates for exchange service now in effect at its Wrightsville 
Beach, N. C. exchange, and has proposed as a condition of the installation 
of the new dial system that the following schedule of monthly exchange 
rates be placed in effect upon the billing date next succeeding the completion 
of the installation of the aforesaid dial system and the furnishing of service 
therefrom, providing the North Carolina Utilities Commission will approve 
the schedule of exchange rates as herein set out. 



Decisions and Adjustments of Complaints 191 

Business Individual Line $6.00 

Business 2-Party Line 5.25 

Business 4-Party Line 4.50 

Business Rural Line 3.25 

Residence Individual Line 3.25 

Residence 2-Party Line 2.75 

Residence 4-Party Line 2.25 

Residence Rural Line 2.00 

Semi-public telephone service — daily guarantee of revenue from local 

messages — twenty (20) cents. 

Season Service. 

"1. Applicants who are users of service only during seasonal or temporary 
periods will be furnished season service in accordance with the following 
provisions, 

(a) All service and equipment except private branch exchange service. 

(1) Service for the first month, or fraction thereof, three times the 
monthly schedule rates ; for the second month, or fraction thereof, 
two times the monthly schedule rates, and for each additional 
month the monthly rate will apply, provided that the total 
charge for service furnished continuously during the period of 
twelve consecutive months next following the date of installation, 
shall not exceed the amount of twelve months' charge for the 
service furnished at the monthly schedule rate. 

"Be It Resolved: That it is the sense of the Council that the schedule 
of monthly rates hereinbefore set out are fair and equitable and are hereby 
approved and endorsed, and that by the passage of this resolution, the 
Council prays that the North Carolina Utilities Commission will approve 
or authorize the schedule of rates as herein set out to become effective 
as hereinbefore outlined." 

In view of the expense incurred in the installing of dial system, about 
$70,000, at said Wrightsville Beach exchange and the fact that the proposed rate 
schedule provides Wilmington exchange service without toll charge, the Commis- 
sion is of the opinion that the proposed rates are reasonable and should be 
authorized, therefore 

It Is Ordered, that the Southern Bell Telephone and Telegraph Company 
is hereby authorized to put into effect the schedule of exchange rates set 
forth herein to become effective upon the billing date next succeeding the 
completion of the installation of aforesaid dial system and the furnishing of 
service therefrom. 

This, the 10th day of July, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

Docket No. 4080 



192 N. C. Utilities Commission 

SALE AND PURCHASE OF THE SOUTHPORT-SHALLOTTE TOLL 

LINE. 



Order 

In this case J. A. Barbot, owner of the Southport-Shallotte Toll Line, 
requests authority to sell and transfer and E. G. Maxwell requests authority 
to purchase the entire properties of the aforementioned company. 

From the information available in this case, the Commission is of the 
opinion that the transfer of the Southport-Shallotte Toll Line properties as 
requested above would be in the interest of the public, and the Commission so 
finds. 

Wherefore, It Is Ordered that J. A. Barbot is hereby granted authority to 
sell and transfer the entire properties of the Southport-Shallotte Toll Line 
and E. G. Maxwell is granted authority to purchase same. 

It Is Further Ordered that the present rates of the Southport-Shallotte 
Toll Line be continued in effect. 

It Is Further Ordered that this order shall constitute a certificate of 
convenience and necessity in accordance with Chapter 455, Public Laws of 
North Carolina, 193L 

By Order Of The Commission, 

This 4th day of September, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4507 

WESTERN CAROLINA TELEPHONE COMPANY 

PETITION FOR AUTHORITY TO ISSUE AND SELL 1,406 SHARES 

OF COMMON CAPITAL STOCK 

Order 

This matter comes before the North Carolina Utilities Commission on the 
application of Western Carolina Telephone Company (hereinafter referred 
to as the Company) for authority to issue and sell 1,406 shares of Common 
Capital Stock for cash at not less than par value of $50 per share. 

It has been made to appear to the Commission that from January 1, 
1943, to October 31, 1948, the Company has made net additions to its 
telephone plant and properties amounting to $101,287.08, and that during that 
period gross expenditures for new construction were $136,420.98. The Company 
anticipates that such expenditures will continue at a high level at least 
through 1950. Notwithstanding these expenditures, the Company had on hand 
on October 31, 1948, 226 unfilled applications for telephone service which it 



Decisions and Adjustments of Complaints 193 

was unable to fill because of the lack of facilities necessary to render service. 

Commencing in the latter part of 1946, expenditures in the construction 
program of the Company and for necessary materials and supplies were in 
part temporarily financed by short-term bank loans. As of October 31, 1948, 
the amount of temporary short-term bank loans owing by the Company 
was $41,000 and it is estimated that the aggregate amount of these temporary 
short-term bank loans will be $55,000 as of February 1, 1949. 

The Company desires authority to issue and sell for cash at this time 
1,406 shares of its common capital stock at not less than par value of $50 
per share. The proceeds from such sale will be applied to the payment and 
discharge of the then outstanding short-term bank loans, and the remainder 
of such proceeds, if any, will be used by the Company to pay the expenses 
of issue, estimated not to exceed $900, and to meet further requirements of the 
Company's construction and improvement program. Resolutions adopted by the 
Board of Directors of the Company of November 18, 1948, authorize the 
proposed issue of common capital stock and set forth the terms and conditions 
under which the shares are to be offered for prorata subscription at the 
par value of $50 per share to the holders of the outstanding 1,406 shares 
of common capital stock of the Company, the offer to be made in the ratio 
of one new share of common capital stock for each outstanding share 
held of record. Under such offering the Company reserves the right to 
re-offer for sale, at a price or prices in no event less than $50 per 
share, such of the 1,406 shares of common capital stock as are not subscribed 
for by stockholders or their assigns in the exercise of warrants to be issued 
by the Company to the holders of the outstanding common capital stock. 

It appears from an exhibit filed with the application that the issue and 
sale by the Company of such additional shares of common capital stock 
has been duly authorized by the Board of Directors as required by law. 

Upon consideration of the application and exhibits filed therewith, the 
Commission finds that the proposed issue and sale by the Company of such 
1,406 shares of its common capital stock for not less than the par value 
thereof is for a lawful object within the corporate purposes of the Company, 
is compatible with the public interest, is necessary and appropriate for and 
consistent with the proper performance by the Company of its obligations 
to render service as a public utility and will not impair the Company's 
ability to perform that service, and is reasonably necessary and appropriate 
for such service. 

Wherefore, Western Carolina Telephone Company is hereby authorized 
to issue and sell, at not less than par value of $50 per share, such 
1,406 additional shares of common capital stock of the Company, upon the 
terms and for the purposes set forth in the application of the Company filed 
with this Commission. 

Nothing contained in this Order or in the findings of fact herein made 
shall be construed to imply any guarantee or obligation as to such common 



194 



N. C. Utilities Commission 



capital stock on the part of the State of North Carolina or of the North 
CaroHna Utilities Commission, 

Dated December 15th, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

Chas. Z. Flack, Chief Clerk 

ATTEST: 

Docket No. 4599 

INCREASE IN THE EXCHANGE RATES OF THE WINGATE 
TELEPHONE COMPANY 

Order 

In this case the Wingate Telephone Company comes before the Commission 
and asks that it be granted authority to increase its exchange rates fifty 
cents per subscriber per month. 

The Company asserted that the increase requested was necessary for it 
to operate at a profit and supply efficient service. 

The reports filed with the Commission show that an increase in revenue 
is needed by the company ; furthermore it is the opinion of the Commission 
that the rates requested are reasonable, therefore 

It Is Ordered, that on and after May 1, 1947, the Wingate Telephone 
Company is hereby authorized to put into effect the following exchange rates 
applicable to base rate area : 



1 Party 



2 Party 



3 Party 



Business 








Wall (Old) 


$2.50 


$2.00 




Wall (Modern) 


3.00 


2.50 




Desk or Hand Set 


3.50 


3.00 




Residence 








Wall (Old) 


$2.00 


$1.75 


$1.50 


Wall (Modern) 


2.25 


2.00 


1.75 


Desk or Hand Set 


2.50 


2.25 


2.00 


Extensions : 








Business 


$1.25 






Residence 


1.00 







This, the 25th day of April, 1947. 



Chas. Z. Flack, Chiej Clerk 
Docket No. 3501 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 195 

WATER COMPANIES 

INCREASE IN THE WATER RATES OF THE ACTON WATER 

COMPANY. 



Order 

In this case, the Acton Water Company comes before this Commission 
with the request that it be granted authority to put into effect on January 1, 
1947, a water rate schedule as follows : 

First 1500 gallons of water or less $1.25 

Water in excess of 1500 gallons 50c for each 100 cubic 

feet or fraction thereof 

No meter charge. 

No one appeared in opposition. 

The Company points out that the City of Asheville from which it gets 
its water supply has increased its rates and that in addition labor and 
other operating costs have increased which makes it necessary for the Company 
to have additional revenue if it is to continue on a profitable basis. 

It is apparent to the Commission that the Company needs additional revenue 
and that the rates proposed are reasonable and should be granted ; therefore, 

It Is Ordered: That the Acton Water Company is hereby authorized 
to put into effect on January 1, 1947, the proposed rates set forth above. 

This, the 31st day of December, 1946. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3835 

CERTIFICATE OF CONVENIENCE AND NECESSITY FOR RABUN 

LAND AND WATER COMPANY TO OPERATE AS AN ELECTRIC 

UTILITY IN NORTH CAROLINA. 

Order 

In this case the Rabun Land and Water Company comes before the Commission 
and asks that it be granted a certificate of Convenience and Necessity to 
legalize its operation in North Carolina. 

According to the application, the Company's principal place of business is 
near Dillard, Georgia and the North Carolina service is an offshoot of its 
Georgia operation. 



196 N. C. Utilities Commission 

A map of the area in question and a list of the North CaroHna customers, 
112 in number with their addresses, is filed with the application. 

The following rate schedule is also made a part of the application : 

Per Month: 

First 50 Kwhrs. @ 5c per Kwhr. 

Next 150 Kwhrs. @ 3c per Kwhr. 

All over 200 Kwhrs. 2c per Kwhr. 

Plus service $1.00 

Total Monthly bill subject to 15% discount. 

The application states that the customers in North Carolina are pleased 
with the service and the rates charged. The application also sets forth that 
the McCrary interests, which operates the Rabun Land and Water Company, 
own several tracts of land and two valuable highhead undeveloped power 
sites on upper and lower Middle Creek in North Carolina totalling 3000 H. P. 
which it plans to develop. 

An investigation by this Commission shows that the territory now being 
served in North Carolina by the applicant does not infringe upon the territory 
of adjacent utilities. 

The Commission is of the opinion that the applicant is rendering a needed 
and satisfactory service to the customers in question ; that the rates are 
deemed reasonable, and the representation of the Company that service in 
North Carolina was begun through' inadvertance to the N. C. law. The 
Commission is of the opinion that Certificate requested should be granted, 
therefore 

It Is Ordered, that the Rabun Land and Water Company is hereby granted 
a Certificate of Convenience and Necessity as provided by Chapter 455, Public 
Laws of North Carolina, 1931, to operate as an electric utility in North 
Carolina in the area it now occupies and serves, and that this order shall 
constitute such Certificate of Convenience and Necessity. 

It Is Further Ordered, that the rates for electric service herein set forth 
are hereby approved. 



This 13th day of July, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 4069 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 197 

APPLICATION OF THE SPRING LAKE ENTERPRISES, 
INCORPORATED FOR A CERTIFICATE OF CONVENIENCE AND 

NECESSITY. 



Order 

Pending hearing on the apphcation of the Spring Lake Enterprises, 
Incorporated for a certificate of convenience and necessity to operate as a 
water utility, the Commission hereby authorizes the appHcant to place in 
efifect, on a temporary basis, on all billings on and after November 1, 
1947 the following rates and charges : 

Residence 

$2.00 For the first 3000 gallons 
.50 Per 1000 for next 5000 gallons 
.40 Per 1000 for next 5000 gallons 
.35 Per 1000 for all over 13000 gallons 
Minimum — $2.00 

Commercial 

$5.00 For first 3000 gallons 

.40 Per 1000 for next 7000 gallons 
.30 Per 1000 for all over 10000 gallons 
Minimum — $5.00 

Connection Charges 

Water / $10.00 

Sewer $15.00 

Deposits 

Residence $ 5.00 

Business $10.00 

FOR SEWER SERVICE WITHOUT WATER SERVICE 
$1.50 per month. 



This 20th. day of October, 1947. 



Chas. Z. Flack, Chief Clerk 
Docket No. 4157 



Stanley Winborne. Chairman 
Fred C, Hunter, Commissioner 
R. G. Johnson, Commissioner 



198 N. C. Utilities Commission 

TRANSPORTATION 

RAILROAD COMPANIES 

General Orders 

GENERAL INCREASES IN THE INTRASTATE RATES, FARES AND 

CHARGES OF RAILROAD COMPANIES OPERATING WITHIN THE 

STATE OF NORTH CAROLINA. 

Reviewing And Affirming Report And Order 

As part of a general plan participated in by all of the railroads to provide 
for additional revenues with which to meet an era of continuing increases 
in wages and other operating costs, the companies operating in North Carolina 
filed a petition with us on December 29, 1941, for an increase of 10 per 
cent in their intrastate freight rates and passenger service charges, subject 
to a few exceptions as to particular commodities or services. 

Following a hearing on February 3, 1942, relating solely to the proposed 
increases in passenger service charges, our order in Docket No. 761, February 
5, 1942, authorized the increase of 10 per cent in charges for passenger 
service. This authorization included an increase of 10 per cent in civilian 
coach fares, raising such fares from 1.5 cents to 1.65 cents per coach passenger 
per mile. 

The application respecting increases in freight rates and charges was 
amended at the hearing on March 16, 1942, which hearing related only to 
the proposed increases for freight service charges. The amendments were in 
conformity with increases permitted by the Interstate Commerce Commission 
on March 2, 1942, in its Docket Ex Parte No. 148. These increases were 
generally 6 percent except increases in rates on the products of agriculture, 
live stock and road aggregates were held to 3 per cent ; also the increase 
in coal rates was graduated in cents per ton with an additional exception 
as to switching service when not connected with a line haul. We authorizd 
corresponding increases in rates for intrastate service to become effective 
April 1. 1942, as set out in the order of April 4. 1942, Docket No. 2477. 

In the month of December, 1941, at which time all of the railroads in 
the entire country filed their petition with the Interstate Commerce Commission 
in Docket Ex Parte No. 148, and the railroad companies in North Carolina 
filed their corresponding petition with us for a general increase of 10 percent 
in intrastate freight rates and charges (Docket No. 2477) and in passenger 
service charges (Docket No. 761) ; the railroads in the Southern Region, 
which, with the exception of the Norfolk and Western Railway Company, 
includes the North Carolina lines, were at that time, generally speaking, on 
both interstate and intrastate trafific basing their coach fares for civilian 
travel at 1.5 cents per passenger per mile. This practice had been in effect 
for several years. 

By order, after hearing, the Interstate Commerce Commission authorized, 



Decisions and Adjustments of Complaints 199 

in response to the carriers' petition, an increase of 10 percent in "existing 
fares", January 21, 1942, Ex Parte No. 148. Likewise, the North Carolina 
Commission, after hearing, on February 3, 1942, by order in Docket No. 761, 
authorized a corresponding increase of 10 per cent in the then existing fares. 
The railroads in some of the other account-Regions of the country had been 
charging 2 cents per passenger per mile for coach travel, and when the 
interstate increase of 10 per cent in such fares had been granted by 
Federal and State authority to such Regional carriers, the increase of 10 
per cent was applied to a fare of 2 cents per mile. 

The Southern Region lines then, on July 14, 1942, filed a petition with 
the Interstate Commerce Commission in Docket Nu. 26550, Passenger Fares 
and Surcharges 214 ICC 174, decided February 28, 1936, seeking authority 
to apply the interstate increase of 10 per cent to a basic coach fare of 2 
cents per mile rather than to 1.5 cents per mile as was originally sought and 
authorized on January 21, 1942. The petition of July 14, 1942, was, on that 
pleading, denied in a joint order of August 1, 1942, but at the same time 
was approved in Ex Parte No, 148, likewise without hearing. 

The North Carolina Southern Region lines then filed a petition with us 
on October 12, 1942, which, among other things, sought authority in the 
main to increase coach fares frum 1.65 cents per mile to 2.2 cents per mile. 
This matter was placed on the docket and heard as No. 2789, and as set 
out thereunder in our report and order of July 8, 1943, the aforesaid 
proposed increase was not approved. Whereupon, under the procedure provided 
in Section 13 of the Interstate Commerce Act, the Southern Region Carriers 
in North Carolina caused the Interstate Commerce Commission to institute 
a proceeding of investigation into the level of the North Carolina Intrastate 
civilian coach fares for the purpose of superseding our State authority by 
increasing such fares if found to contravene the Interstate Commerce Act. 

In the report and order in that proceeding, Docket No. 29036, Interstate 
Commerce Commission held against us by requiring intrastate coach fares of 
2.2 cents per mile. That decision was upheld by a Federal District Court in 
the Eastern District of North Carolina, but was reversed by the United States 
Supreme Court in No. 560, North Carolina v. United States. 325 US 507. 
During the period August 1, 1944, to July 25, 1945, while the appeal to 
the Supreme Court was pending, the railroads established and maintained 
intrastate Civilian coach fares based on 22 cents per mile. By notice 
in our Docket No. 2789, returnable January 31, 1947, the Atlantic Coast 
Line Railroad Company, Seaboard Air Line Railway Company (L. R. Powell, 
Jr., and Henry W. Anderson, Receivers) and successor Seaboard Air Line 
Railroad Company, and Southern Railway Company are afforded an opportunit> 
to show cause, if any there be, why they should not be required to refund 
charges based on coach fares in excess of 1.65 cents per mile, which were 
collected pending our appeal to the United States Supreme Court. Meantime, 
some of the smaller carriers, Norfolk Southern Railway Company, Aberdeen 
and Rockfish Railroad Company, etc., by separate petitions and proof, were 
able to justify the higher basis of coach fares and by various supplemental 
orders in Docket No. 2789 they were authorized to effect the increase. 



200 N. C. Utilities Co^[MIssTON 

The emergency general increases in freight rates authorized in Docket No, 
2477 which became effective April 1, 1942, remained in effect until they 
were suspended effective May 15, 1943, and from time to time the suspension 
period was extended until they were restored on July 1, 1946, under authority 
extended in the order of June 26, 1946, in the instant proceeding. Said 
restoration was simultaneous with a similar restoration of increases in interstate 
rates and charges authorized as a temporary expedient by the Interstate 
Commerce Commission in Ex Parte Docket Nos. 148 and 162, pending a 
full investigation into the revenue needs of the railroads. Said order of June 
26, 1946, was responsive to an application filed un May 2, 1946, for a 
general 25 per cent increase in freight rates and charges with certain 
specified exceptions and for authority to continue without expiration date, 
the 10 per cent increase in passenger fares and charges authorized in Docket 
761 on February 5, 1942. The latter part appears to be superfluous since 
said Docket 761 order did not require an expiration date. A supplemental 
application was filed by the railroads on December 10, 1946, amending the 
original application by changing the extent of the increases in freight rates 
and charges sought to be the same as those authorized by the Interstate 
Commerce Commission on interstate traffic in its order in Docket Nos. Ex 
Parte 148 and 162 dated December 5, 1946, a copy of which was attached 
to said supplemental application. The latter document also changed the original 
application with respect to the basic coach passenger fares. Instead of 
continuing without expiration date the fares based on 1.65 cents per mile 
the applicants sought to increase the base to 22 cents per mile. This phase 
of the application will be the subject of a separate investigation to be 
announced within the near future. 

Wide publicity was given the May 2 and December 10, 1946 applications, 
and the only protests received were against proposed increases in rates on 
pulpwood and extract wood ; against the proposed increase in wharfage, storage 
and handling charges at Wilmington, N. C, on nitrate of soda, and in charges 
for intra-terminal. inter-terminal and inter-city switching. 

The North Carolina Commission was directly represented at some of the 
hearings before the Interstate Commerce Commission in its Docket Nos. Ex 
Parte 148 and 162. We have had the benefit of the record in that proceeding 
and some of the briefs, and based upon a study of the evidence and the 
summaries thereof by counsel representing adversary interests we concluded 
that substantial increases in rates and charges in the same or similar measure 
as authorized by the Interstate Commerce Commission in its report and 
order of December 5, 1946, would be needed to provide revenues on a 
permanent and continuing basis with which to meet the expenses of operation 
and to provide income sufficient to allow a fair return. Therefore, with the 
certain exception^ enumerated below we authorized the petitioners on less 
than statutory notice to publish and file with us to become effective January 1, 
1947. on intrastate trafiic, the same measure of increases as had been authorized 
to become effective on that day by the Federal Commission on interstate 
traffic. 

The proposed increases in charges for wharfage, handling and storage of 



Decisions and Adjustments of Complaints 201 

nitrate of soda at Wilmington, for intra-terminal, inter-terminal and inter-city 
switching and in rates on pulpwood and extract wood, will be the subject 
of a hearing or hearings which will be announced at an early date. 

The increases which become effective on January 1, 1947, both interstate 
and intrastate applied to rates and charges in effect prior to July 1, 1946, 
the day on which Docket No. 2477, emergency increases were restored. 
Said emergency increases as authorized in our order of June 26, 1946, having 
served their purpose during the pendency of the application herein and having 
no further usefulness ; therefore, the authority contained in the June 26, 
1946. order will be withdrawn. In affirmation of the action taken herein 
as heretofore of record more briefly transmitted to petitioners' duly authorized 
representatives ; 

It Is Ordered, That the order herein dated June 2b, 1946, be and same 
is hereby vacated and set aside as of January 1, 1947, 

It Is Further Ordered. That the general increases sought in the application 
herein, as amended, and as more fully described in the order of the 
Interstate Commerce Commission in Docket Ex Parte Nos. 162 and 148, 
dated December 5, 1945, copy of which is attached to the amendment to 
said application filed December 10, 1945. except the increase in coach 
passenger fares from a base of 1 .65 cents per mile to 2.2 cents ; except 
the increases in charges for wharfage, handling and storage of nitrate of 
soda at Wilmington, N. C, and for intra-terminal, inter-terminal and inter-city 
switching ; and except increases in rates on pulpwood and extract wood ; be 
and same are hereby approved. 

It Is Further Ordered, That all outstanding orders or circulars of the 
Commission authorizing or prescribing rates or charges, except an order 
of December 3. 1941, Docket No. 1301 ; and Order of July 8, 1945, Docket 
No. 2789, and an order of May 15, 1946, Docket No. R. S. 2705, be, and 
the same are hereby modified to the extent necessary to permit the increased 
rates and charges affirmed in the foregoing report and order ; but that in 
all other respects the said outstanding orders with the exceptions noted 
shall remain in full force and effect. 

By Order Of The Commission. 

This 15th day of January, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3609 . . 

PETITION OF RAILROADS OPERATING IN NORTH CAROLINA 
FOR AUTHORITY TO INCREASE THEIR BASIC COACH FARES 
FROM 1.65 CENTS PER MILE TO 2.2 CENTS PER MILE FOR 
CIVILIAN TRAVEL AND TO MAKE OTHER ADJUSTMENTS IN 
PASSENGER FARES. 

Sixth Supplemental Order 

By a joint petition filed March 7, 1947, the Piedmont and Northern Railway 
Company and Durham and Southern Railway Company seek authority to 



202 N= C\ Utilities Commission 

publish fares that exceed the maximum fares resulting from the Order in 
Docket 761, dated February 5. 1942, and from the Order in this proceeding 
dated July 8, 1943. for the purpose of publishing fares for transportation in 
sleeping and parlor cars based on 3.3 cents per mile, and coach fares 
based on 2.2 cents per mile. The two railroads named above were not 
petitioners in the proceeding which resulted in the Order of July 8, 1943. 
However, it appears desirable in the interest of clarity to respond to their 
petition with an order. 

Upon consideration of the facts presented, the Commission has concluded 
that good cause has been shown. Accordingly, 

It Is Ordered. That the petition herein be. and same is hereby, approved. 

By Order Of The Commission. 

This 12th day of March, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2789 

PETITION OF RAILROADS OPERATING IN NORTH CAROLINA 
FOR AUTHORITY TO INCREASE THEIR BASIC COACH FARES TO 
2.5 CENTS PER MILE, AND TO INCREASE BASIC FARES FOR 
TRAVEL IN SLEEPING AND PARLOR CARS TO 3.5 CENTS PER 
MILE; ALSO FOR AUTHORITY TO MAKE RELATED 
ADJUSTMENTS IN PASSENGER FARES. 

Order 

APPEARANCES. 

W. T. JoYNER, J, A. BisTLiNE. L. L. Oliver. Charles p. Reynolds, 
and LuciAN H. Cocke, Jr.. for Petitioners, 

Harry McMullan. Attorney-General, assisted by Calder Womble. for 
the North Carolina Utilities Commission. 

By supplemental petition filed December 10. 1946 to a more general petition, 
dated May 1, 1946. as later amended by other supplemental petitions, 
passenger carrying railroads in North Carolina seek authority to increase 
their present fares to the levels authorized by the Interstate Commerce 
Commission in its orders in Dockets Nos. 29785 and 29796, dated October 6, 
1947. Present basic fares for one-way coach travel are generally 1.65 cents 
per mile; however, the Norfolk and Western Railway and some of the 
short lines maintain coach fares within the State based on 2.2 cents per 
mile. Present one-way unrestricted fares for transportation in sleeping and 
parlor cars are based on 3.0 cents per mile. Petitioners seek to increase 
this basis to 3.5 cents per mile. However, they are aware of the statutory 
maximum of 3 cents per mile provided in General Statute 60-89. Petitioners 
propose to increase the present minimum one-way fares, generally 11 cents, 
to 15 cents. They also propose to make round trip fares, both unrestricted 
and coach, 180 percent of one-way fares with a three-month limit. This 



Decisions and Adjustments of Complaints - 203 

ratio is presently observed in computing round- trip coach fares subject to 15 
days' limit with approximately 10% added when the limit is extended to 
60 days. It is also presently observed in computing unrestricted fares subject 
to a three-month limit. In computing the proposed one-way fares, fractions of 
one cent are to be disposed of by dropping amounts less than 0.5 cents and 
increasing to the next higher whole cent, fractions of 0.5 cents and greater. 
Those resulting from computation of round trip fares ending in digits other 
than "0" or "5" are to be increased to the next higher figure ending in "0" 
or "5' cents. 

The matter was assigned and came on for hearing at the Commission in 
Raleigh on April 15, 1948, with appearances as noted above. 

The petition, as amended, is based on the railroads' need for additional 
passenger revenue, to meet drastic increases in operating expenses, coincident 
with a continuing, rapid decline in volume of passenger traffic. Additionally, 
petitioners' operating equipment is in urgent need of reconditioning and 
modernization, which under present economic conditions, will involve substantial 
expenditures. 

The passenger operating ratio of the Southern Railway Company, a statistic 
which reflects both the increased operating costs and reduction of traffic, 
was 89 in 1946, and 118 in 1947, as compared with the average for the 
five years, 1941 to 1945, inclusive, of 57. Similar figures for the Atlantic 
Coast Line Railroad Company were 96, 119 and 66. For the Seaboard 
Air Line Railroad Company, they were 101, 121, and 63. Thus it will 
be observed that during 1947 the principal railroad carriers of passengers in 
North Carolina were required to spend substantially more than one dollar in 
order to produce one dollar of passenger revenue. The petitioners are of the 
opinion that this disparity between revenues and expenses is expected to 
widen unless the increases herein sought are authorized. The operating ratios 
stated, result from passenger operations over the entire lines in all states, 
of the roads named, both interstate and intrastate. Separation of intrastate 
revenue presents some difficulty, but intrastate passenger operating expenses 
cannot be precisely determined because the items composing the total are 
preponderantly common to either interstate passenger or freight service or 
to both, and separation would have to be arbitrary. Consequently, intrastate 
passenger operating ratios are not available. 

The precipitous drop in North Carolina intrastate passenger revenue during 
the five-year period, 1943, 1947, is indicated in the following tabulation: 

North Carolina Intrastate Passenger Revenue 
(Dollars) 

Year Atlantic Coast Seaboard Air Southern Total 

Line Railroad Line Railroad Railway 

233 655 1 446 447 1 990 293 

221 725 1 167 186 1 707 926 

166 703 1 223 116 1 650 938 

76 548 883 265 1 163 693 

71 507 330 243 556 456 



1943 


310 191 


1944 


319 015 


1945 


261 119 


1946 


203 880 


1947 


154 706 




1 248 911 



770 138 5 050 257 7 069 306 



204 N. C. Utilities Commission 

Corresponding intrastate passenger operating expenses are not available for 
the reasons previously stated. However, there is no reason to believe that 
such expenses within the state of North Carolina have followed any trend 
other than that recorded throughout all the states taken as a whole served 
by the three carriers and which resulted in the unfavorable operating ratios 
hereinbefore set forth. 

The matter of an increase in passenger fares was before us several years 
ago at which time our action in disapproving the increase then sought 
became the subject of litigation wherein our position was finally sustained 
in State of North Carolina et al v. United States of America et al, 325 U. S. 
507. The course of that litigation will not here be related for it has 
no bearing on the matter now at hand. It is mentioned only because of 
the fact that it arose from our report and order of denial issued July 8, 
1943, wherein is recited the evidence of passenger service operations of that 
era. A greater reversal from the favorable conditions and financial results 
of that period of the past to the profitless condition shown by the current 
record is a challenge to the imagination. On the old record we disapproved 
the increase, on the current record the proposed increases hereinbefore set 
out are approved except the statutory maximum may not be exceeded. Upon 
consideration of the entire evidence of record, and good cause appearing, 

It Is Ordered, To the extent the increases in passenger fares herein sought 
by the petitioning carriers, do not exceed the statutory maximum of 3.0 cents 
per mile, that the said fares be and the same are hereby authorized. 

By the Commission, 

This 3rd day of June, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 2789 

APPLICATION OF RAILROADS OPERATING IN NORTH CAROLINA 

FOR RELIEF FROM THE TERMS OF THE GENERAL RULES AND 

REGULATIONS GOVERNING THE CONSTRUCTION, FILING AND 

POSTING OF FREIGHT AND PASSENGER TARIFFS. 

Order 

By application filed May 23, 1948, as provided for in the Commission's 
Rules and Regulations governing the construction, filing and posting of tariffs, 
all railroads operating in North Carolina seek authority to tender for filing 
and posting on less than statutory notice, tariff schedules containing revised 
fares, rules and regulations as authorized in order in Docket Number 2789, 
dated June 3, 1948, as described in said order. 



Decisions and Adjustments of Complaints 205 

Upon consideration of the circumstances and conditions relied upon by- 
applicant and good cause appearing, 

It Is Ordered, That the applicant herein be and same is hereby authorized 
to publish on 10 days' notice to the Commission and to the public the 
tariff schedule hereinbefore described by filing and posting in the manner 
otherwise required by the Commission's Rules. 

It Is Further Ordered, That unless the tariff' schedule herein proposed 
is published to become effective not later than July 15, 1948, the authority 
herein granted shall be null and void. 

By order of the Commission. 

This 3rd day of June, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3340 

APPLICATION OF RAILCARRIERS FOR GENERAL INCREASE IN 

CARLOAD PULPWOOD RATES AND GENERAL INVESTIGATION 

OF SAID RATES FOR SINGLE LINE APPLICATION. 

Notice Of Opportunity To Show Cause 

Respondents in this proceeding whose names appear in the appendix hereto, 
also in Appendix "B" to the report and order herein of June 8, 1948, are 
hereby required to file under the governing statutes and rules, in the usual 
manner upon not less than 5 days notice to the Commission, revised tariff 
publications of rates for the transportation of pulpwood in carloads which 
rates shall not exceed the maximum level authorized by the said report 
and order herein of June 8, 1948. Further, the said revised tariff publications 
are hereby required to be issued and filed on the aforesaid notice to 
become effective on or before August 23, 1948. 

In the event that anyone or more of the respondents in this proceeding 
may not be in a position to meet the requirements of the foregoing paragraph; 
then in that event such respondent or respondents are hereby directed to 
show cause, if any there be, in a writing under oath, to be filed with the 
Commission on or before August 16th, 1948, or to appear in person on that 
date : 10 :00 A. M., Commission's hearing room in Raleigh, or by both methods, 
why additional time for compliance should be allowed, or why the tariff 
filing requirements provided herein should be otherwise modified or changed. 

By order of the Commission. 

This 17th day of July, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4058 ; 



206 



N. C. Utilities Commission 
RESPONDENTS IN DOCKET NO. 4058 



Appendix To Notice Of Opportunity To Show Cause, July 17, 1948 
{Page 1 of 2 pages) 



G. F. Dempsey, T. M. 
Aberdeen & Rockfish Railroad Co. 
Mumford St. 
Fayetteville, N. C. 

C. K. Sherrill, Vice-President 
Alexander Railroad Co. 
Taylorsville, N. C. 

E. T. Ussery, General Manager 
Atlantic & Western Railway Co. 
Sanford, N. C. 

A. L. Thompson, Vice-Pres. & 
Traffic Mgr. 

Atlantic & Yadkin Railway Co. 
911 Jefferson Standard Building 
Greensboro, N. C. 

R. B. Warner, G. F. A. 
Atlantic Coast Line Railroad Co. 
Wilmington, N. C. 

A. T. Leary, General Manager 
Beaufort & Morehead Railroad 
Beaufort, N. C. 

C. A. Smith, Traffic Manager 
Black Mountain Railway Co. 
Erwin, Tenn. 

F. C. Page, Freight Traffic Manager 
Cape Fear Railways, Inc. 

Fort Bragg, N. C. 

C. H. Dunn, G. F. A. 
Carolina & Northwestern Railway Co. 
Southern Railway Building 
Charlotte, N. C. 

J. H. Matthews, General Manager 
Carolina Southern Railway Co. 
Windsor, N. C. 

M. Hendrick, President 
Cliffside Railroad Co. 
Cliffside. N. C. 



C. A. Smith, Traffic Manager 
Clinchfield Railroad Co. 
Erwin, Tenn. 

C. H. Dunn, G. F. A. 
Danville & Western Railway Co. 
Southern Railway Building 
Charlotte. N. C. 

L. R. Lawson, Traffic Manager 
Durham & Southern Railway Co. 
422 Church St. 
Charlotte, N. C. 

R. J. Doss, Traffic Manager 
East Carolina Railway 
Wilmington, N. C. 

L. W. Wilson, Secretary 
Graham County Railroad Co. 
Robbinsville, N. C. 

C. H. Dunn, G. F. A. 

High Point, Randleman, Asheboro and 

Southern Railroad Co. 

Southern Railway Building 

Charlotte 1, N. C. 

F. J. Flagler, G. F. A. 

High Point, Thomasville & Denton 

RR Co. 

High Point, N. C. 

R. A. Thorne, G. F. A. 

Laurinburg and Southern Railroad Co. 

Laurinburg, N. C. 

E. J. Cottom, G. F. A. 

Louisville & Nashville Railroad Co. 

908 West Broadway 

Louisville 1, Ky. 

W. B. Davis, Agent 
Moore Central Railway Co. 
Carthage, N. C. 



Decisions and Adjustments of Complaints 



207 



C. F. Keeley, A. F. T. M. 
Norfolk & Western Railway Co. 
10 N. Jefferson St. 

Roanoke, Va. 

/ 

R. L. Ford, G. F. A. 
Norfolk Southern Railway Co. 
Terminal Bldg., 
Norfolk, Va. 

L. R. Lawson, Traffic Manager 
Piedmont & Northern Railway Co. 
422 S. Church St. 
Charlotte, N. C. 

S. E. Jones, General Manager 
Rockingham Railroad Co. 
Rockingham, N. C. 

C. L. Senter, G. F. A. 
Seaboard Air Line Railroad Co. 
Seaboard Railroad Building 
Norfolk 10, Va. 

Darrow Kirkpatrick, G. F. A. 
Southern Railway Co. 
Southern Railway Building 
Atlanta 3, Ga. 

Darrow Kirkpatrick, G. F. A. 
State University Railroad Co. 
Southern Railway Building 
Atlanta 3, Ga. 



H. L. Brewer, Receiver 
Tallulah Falls Railway Co. 
Cornelia, Ga. 

H. T. Ratliff, Traffic Manager 
Tennessee & North Carolina Railway 

Co. 
Hamilton, Ohio 

R. S. Rodwell, Supt. 
Warrenton Railroad Co. 
Warrenton, N. C. 

J. H. Swain, Traffic Manager 
Winston-Salem Southbound Railway 

Co. 
313 Reynolds Building 
Winston-Salem 1, N. C. 

C. H. Dunn, G. F. A. 
Yadkin Railroad Co. 
Southern Railway Building 
Charlotte 1, N. C. 

Joseph Marks, A. F. T. M. 
Southern Railway System 
Washington 13, D. C. 

J. B. Nordon, G. F. A. 

Virginia 8z Carolina Southern RR Co. 

Lumberton, N. C. 

E. E. Young, G. F. A. 

Atlantic & East Carolina Railway Co. 

Medical Arts Building 

KinstoH, N. C. 



IN THE MATTER OF 

RESTRICTING APPLICATION OF MILEAGES AS A BASIS FOR 

RATES TO AND FROM SOUTH ALBEMARLE, NORTH CAROLINA 

IN CONNECTION WITH THE ATLANTIC COAST LINE RAILROAD 

AND WINSTON-SALEM SOUTHBOUND RAILROAD. 



Suspension Order 

It Appearing, That there has been filed with the Commission a tariff 
containing schedules stating new individual and joint regulations and practices 
affecting the transportation of freight by railroad to become effective August 
13, 1947, designated as follows : 

Southern Freight Tariff Bureau, R. H. Hoke, Agent 

That portion of Supplement No. 51-F to NCUC 52, North Carolina 



208 N. C. Utilities Commission 

Intrastate Tariff reading "Note — Not applicable in arriving at mileages 
as a basis for rates from, to or via ACL or WSSB." and the 
reference thereto. 

It Is Ordered, That the Commission upon complaint, without formal pleading, 
enter upon a hearing concerning the lawfulness of the regulations and practices 
stated in said schedules contained in said tariff. 

It Further Appearing, That said schedules make certain changes in the 
regulations and practices applicable to the transportation of freight via railroad 
in North Carolina and the rights and interests of the public appearing to 
be injuriously affected thereby, and it being the opinion of the Commission 
that the effective date of the said schedules contained in said tariff be 
postponed pending said hearing and decision thereon. 

It Is Further Ordered, That the operation of said schedules contained in 
said tariff be suspended, and that the use of the regulations and practices 
therein stated be deferred until the 10th day of November, 1947, unless 
otherwise ordered by the Commission, and no change shall be made in such 
rates, charges, regulations and practices during the said period of suspension 
unless authorized by special permission of the Commission. 

It Is Further Ordered, That if this proceeding is not concluded and the 
final order made prior to the date to which suspended in the next above 
ordering paragraph, the operation of the schedules contained in said tariff 
which on that date have not been affected by vacating orders or which 
have not been cancelled under authority of special permission of the Commission, 
be further suspended and that the rates, charges, regulations and practices so 
suspended be further deferred until the 8th day of February, 1948, unless 
otherwise ordered by the Commission, and no change shall be made in the 
regulations and practices so suspended unless authorized by special permission 
of the Commission. 

It Is Further Ordered, That the regulations and practices thereby sought 
to be altered shall not be changed by any subsequent tariff or schedule 
until this investigation and suspension proceeding has been disposed of or 
until the period of suspension or any extension thereof has expired, unless 
authorized by the Commission. 

It Is Further Ordered, That the above entitled matter is hereby set 
for hearing at 10:00 o'clock a. m. on Wednesday, the 5th day of November, 
1947, at the Commission's hearing room in Raleigh, North Carolina. 

It Is Further Ordered, That a copy of this order be filed with said 
schedule in the office of the Commission, and that a copy hereof be forthwith 
served upon carriers' agent and that said carriers party to said schedules 
be, and they are hereby, made respondents to the proceeding. 

By Order of the Commission. 

This 12th day of August, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4144 



Decisions and Adjustments of Complaints 209 

IN THE MATTER OF 

RESTRICTING APPLICATION OF MILEAGES AS A BASIS FOR 

RATES TO AND FROM SOUTH ALBEMARLE, NORTH CAROLINA 

IN CONNECTION WITH THE ATLANTIC COAST LINE RAILROAD 

AND WINSTON-SALEM SOUTHBOUND RAILROAD. 

Order 

Appearances : ' 

Murray Allen, Archibald Craige and J. F. Swaim for Atlantic 
Coast Line Railroad Company and Winston- Salem Southbound Railway- 
Company, Respondents. 

Joseph P. Cook and L. . C. Adcock for Yadkin Railroad Company, 
George R. Uzzell for Material Sales Company, R. G. Johnson for 
State Highway and Public Works Commission, Rex H. Champion for 
Bryan Rock and Sand Co., Inc., Protestants. 

By tariff schedule issued August 11, 1947, filed to become effective August 
13, 1947, R. H. Hoke, Agent of the Southern Freight Tariff Bureau, proposed 
on behalf of the Atlantic Coast Line Railroad Company and the Winston- 
Salem Southbound Railroad Company, participation in the movement of traffic 
to the Station of South Albemarle over routes embracing one or both of said 
carriers but at the same time proposing to eliminate their mileages for rate 
making purposes. As indicated by date of issue and the proposed effective 
date, the action thus contemplated appearing to violate the provisions of 
G. S., 62-126, as amended, and the rules thereunder, the Commission would 
have been guilty of administrative dereliction had it not suspended these 
proposed changes and assigned the matter for investigation and hearing, 
which was held in Raleigh on November 5. 1947, with appearances as noted 
above. 

Respondents contention that they had been injured by the suspension is not 
supported by evidence. In fact, the statute places the burden of proof squarely 
on the respondents and they failed to present a single witness, although 
a sketch of the Albemarle terminal area was received upon tender by 
counsel who did not explain it except to state that it was introduced to 
give a basis for the consideration of any evidence that might be offered. 

The other position of respondents that no change was proposed and therefore 
under the terms of the statute, G. S. 62-125, as amended, the order 
of suspension was unlawful is not convincing. Clearly, there was filed a 
schedule stating a change in the practice affecting the joint rate to South 
Albemarle as well as the practice of constructing rates on many commodities 
for the distance between numerous points. Likewise that part of the schedule 
which was suspended involved the rule under G. S. 62-126, as amended, 
wherein specific authority is required to legalize the filing of a tariff schedule 
on less than the statutory notice of thirty days. Also, a similar omission 
is noted here as was observed by the Supreme Court in State of North 
Carolina on the Relation of the North Carolina Utilities Commission v. 



210 N. C. Utilities Commission 

Atlantic Coast Line Railroad Company. At 224 NC 283, 289, it is stated: 
"Hence it would seem that the requirement of the statute (G. S., 62-126), 
that thirty days' notice of an increase in rates be given the Utilities Commission, 
properly may be implemented by rule of the Commission requiring that the 
notice be in writing in triplicate. With this rule the defendant did not comply." 

There is considerable merit in the statement of counsel for protestant 
Material Sales Company that establishment of the proposed practice would 
unstabilize the rate structure. We find the proposal under suspension as 
described with particularity in the suspension order of August 12, 1947 has 
not been shown to be just and reasonable; 

It Is Ordered, That respondents be, and they are hereby notified and required 
to cancel the foregoing proposal on or before January 1, 1948, upon not less 
than one days' filing and posting in the manner prescribed by the Rules 
and Regulations governing the filing and posting of tariff publications. 

By order of the Commission. 

This 4th day of December 1947, 

Chas. Z. Flack, Chief Clerk 
Docket No. 4144 

BEFORE THE 
NORTH CAROLINA UTILITIES COMMISSION 

IN THE MATTER OF 

RESTRICTING APPLICATION OF MILEAGES AS A BASIS FOR 

RATES TO AND FROM SOUTH ALBEMARLE, NORTH CAROLINA 

IN CONNECTION WITH THE ATLANTIC COAST LINE RAILROAD 

AND WINSTON-SALEM SOUTHBOUND RAILROAD. 

Order 

It Appearing. That by an order dated August 12, 1947, the Commission 

entered upon a hearing concerning the lawfulness of the regulations and 

practices contained in the tariff schedules designated in said order and 

suspended the operation of said schedules until February 8, 1948; 

It Further Appearing, That respondents have, in compliance with the 
order herein dated December 4, 1947, cancelled the schedules under suspension; 

It Is Ordered, That this proceeding be, and it is hereby, discontinued. 

By Order of the Commission. 

This 6th day of January, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4144 



Decisions and Adjustments of Complaints 211 

BEFORE THE 
NORTH CAROLINA UTILITIES COMMISSION 

IN THE MATTER OF 

PETITION OF J. G. KERR, CHAIRMAN, SOUTHERN FREIGHT 
ASSOCIATION, ASKING THE COMMISSION TO VACATE AND SET 
ASIDE CIRCULAR NO. 348 IN ORDER THAT REVISED RATES ON 
ASPHALT COATED ROAD AGGREGATES MAY BE PUBLISHED FOR 
ACCOUNT OF RAILROADS OPERATING IN NORTH CAROLINA. 

Order 

By petition filed August 15, 1947, and amendment filed November 5, 1947, 
J. G. Kerr, Chairman, Southern Freight Association, for and on behalf of all 
railroads operating in North Carolina petitioned the Commission to vacate and 
set aside Circular No. 348 in order to permit publication of revised scales 
of rates for application on road building material, viz., slag, chert, sand, gravel, 
stone, etc., to which have been added oil, tar, lime or asphalt in amount 
to form more than two percent but not more than nine percent of the 
whole mixture in carloads, as more specifically described and set forth in 
said petition. 

The trunk line rates in Circular No. 348 were made 30 cents per ton 
higher than the then existing single line rates on sand, gravel, crushed 
stone, etc. and the rates so made applied to both single and joint line 
distances. Since their establishment they have been subjected to an increase 
of ten per cent under Docket No. 1239 and a further increase of twenty 
per cent subject to a maximum increase of 30 cents per ton authorized in 
Docket No. 3609. Rates for application to distances over certain short lines 
are higher than the trunk line rates. 

Petitioners propose to publish rates for trunk line applications which are 
25 cents per ton higher than currently applicable rates on sand, gravel, 
crushed stone, etc. (Including Docket No. 3609, General Increases,) Said 
proposed rates will reflect the differentials, joint line over single line that 
exist in the present sand, gravel, crushed stone, etc. Petitioners also propose 
relief line arbitraries for the Carolina Southern and Moore Central Railways, 
which range from 31 to 34 cents per ton. The Appendix hereto contains 
a complete description in detail of Said proposal. 

Good cause appearing, therefore, 

It Is Ordered, That Circular No, 348, be and same is hereby vacated and 
set aside. 

By order of the Commission. 
This 6th day of November, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4148 



212 N. C. Utilities Commission 

APPENDIX 

Page 1 

Statement Of Rates 

(In cents per ton 2000 Pounds) 
Scale Of Rates. 

FOR APPLICATION SEE FOLLOWING PAGE 



* Distance 




Scale 






Miles 


5 


6 


7 


8 


10 


61 


73 


95 


107 


20 


73 


85 


107 


118 


30 


85 


97 


118 


128 


40 


97 


109 


128 


138 


50 


109 


120 


138 


148 


60 


120 


130 


148 


158 


80 


130 


140 


158 


168 


100 


140 


150 


168 


178 


125 


150 


160 


178 


188 


ISO 


160 


170 


188 


198 


175 


170 


180 


198 


208 


200 


175 


185 


203 


213 


230 


180 


190 


208 


218 


260 


190 


200 


218 


228 


290 


200 


210 ■ 


228 


238 


320 


205 


215 


233 


243 


360 


215 


220 


243 


248 


400 


225 


230 


253 


258 


440 


235 


240 


263 


268 


480 


245 


250 


273 


278 


520 


255 


255 


283 


288 



* — ■ For any distance not shown use the next higher distance. 

APPENDIX 

Page 2 

Application Of Scales 

Scale 5 — Apphes for one-hne haul over railroads shown in List 4. 

Scale 6 — Applies for joint hauls over two or more railroads shown 
in list 4. 

Scale 7 — Applies for one-line hauls over railroads shown in List 5. 

Scale 8 — Applies for joint hauls over two or more railroads shown 
in List 5; also for joint hauls over one or more railroads 
shown in List 5, on the one hand, and one or more 
railroads shown in List 4, on the other hand. 



Decisions and Adjustments of Complaints 213 

Lists Of Railroads 
(See Note) 

List 4 — A&R, A&C. A&EC, A&W, A&Y, B&ML, BM, CFR, Car& 
NW, CC&O, Cliff, D&W, D&S, EC, ET&WNC, GC RR, 
HPRA&S, HPT&D, L&S, LS, NS, N&W, PN, Rock, SAL, 
Sou., SU RR, TF, T&NC, V&CS, War, WSSB, Yad. 

List 5 — Car & Sou., Moore C. 

Note — Abbreviations are explained in Southern Freight Tariff 
Bureau Tariff 629-B, NCUC 52. 

Description 

ROAD BUILDING MATERIAL, VIZ: Slag, chert, sand, gravel, 
stone screenings, or broken, crushed or ground stone (including crushed 
natural asphalt stone, having a natural bitumen content of not in excess 
of 5K percent), to which have been added oil, tar, lime or asphalt in 
amount to form more than two percent, but not more than nine 
percent of the whole mixture, in carloads, minimum weight as indicated 
in Note A, this item. 

NOTE A — Minimum weights will be as follows: 

(a) 90,000 lbs., except when car is loaded to full visible 
capacity or to load limit, actual weight will govern. 
Bill of lading must be endorsed "Car Loaded to full 
visible capacity or to load limit" and Agent should 
confirm in the matter of this fact and so endorse the 
waybill. 

IN THE MATTER OF 
PETITION ON BEHALF OF ALL RAILROADS OPERATING IN 
NORTH CAROLINA FOR A GENERAL INCREASE IN THEIR 
INTRASTATE RATES AND CHARGES OF APPROXIMATELY FIVE 
PER CENT BY SUBSTITUTING AN INCREASE OF TWENTY-FIVE 
PER CENT IN LIEU OF THE INTERIM INCREASE OF TWENTY 
PER CENT AUTHORIZED MARCH 31, 1948; ALSO FOR AUTHORITY 
TO MAKE OTHER AND DIFFERENT RATE ADJUSTMENTS ON 
SPECIFIED COMMODITIES. 

Reviewing And Affirming Report And Order 

Appearances : 

A. J. Dixon, Frank W. Gwathmey, Charles Clark, Chas. P. 
Reynolds, J. H. Swaim, O. Arthur Kirkman, C. H. Ware, H. P. 
Edwards, G. F. Dempsey, A. L. Thompson, R. G. Hodgkin and O. W. 
South, Jr., for petitioners. 

Harry McMullan, Attorney General, George Uzzell, I. M. Bailey, 
R. Brooks Peters, Jr., Geo. R. Ross, J. E. Bullock, F. E. Ocheltree, 
I. M. Porter, Rex H. Champion, H. V. Fleming, Chas. W. Strick- 
land and Paul D. Cook for protestants. 

The Report and Order in Docket No. 3609, dated January 15, 1947 



214 N. C. Utilities Commission 

contains an historical account of the general changes in the levels of railroad 
passenger fares and charges and freight rates and charges within the State 
during the period, December 1941 to January 1947. Said order affirmed 
the previously authorized general increases in freight rates and charges which 
became effective January 1, 1947, and which were generally 20%, subject 
to numerous exceptions, resulting in an estimated over-all increase in rates 
and charges in the neighborhood of 17%. The general changes in the 
intrastate freight rate structure since January 1947 are reviewed herein. 

The railroads published and filed, on thirty days' notice, subject to suspension, 
the same adjustment in class rates within the state as was authorized 
by the Interstate Commerce Commission in its order in Dockets 28300 and 
Ex Parte 162, dated July 7, 1947. In the absence of protest or petition for 
suspension, or other reason for investigation, these rates became effective 
simultaneously interstate and intrastate in North Carolina on August 22, 1947. 
They were the interim adjustment prescribed in Docket 28300, held in abeyance 
since 1945 pending conclusion of litigation, increased 22^ percent to reflect 
the general increases authorized to become effective as to all other rates and 
charges on January 1, 1947. 

The data presented the Interstate Commerce Commission in Docket Ex 
Parte No. 162 (considered by this Commission under its Docket No. 3609) 
was, due to the rapidly changing economic condition of the country as related 
to the operation of railroads, out-dated before the decision therein authorizing 
general increases was rendered, according to a petition filed by practically 
all railroads in the United States with the Interstate Commerce Commission 
on July 3, 1947 (Amended July 23, 1947 and September 5, 1947). It was 
recited therein ; that an increase of 2^ cents per hour in wages granted 
employees under the Railway Labor Act procedure, effective May 22, 1946, 
would result in additional wages estimated at $100,000,000 per year; that the 
increase of 2^4 per cent in taxes on taxable income required in the Grosser 
Act effective January 1, 1947 would cost the railroads an estimated additional 
$90,000,000 per year; that the increase of 19.7 per cent, 1947 over 1946 
in the charge-out prices of fuel, materials and supplies, would cost the 
railroads an estimated additional $258,000,000; and that the aggregate of all 
these increases in annual cost occuring since the petition in Docket Ex 
Parte 162 was $448,000,000. Petitioners submitted a copy of their July 3rd 
petition and the July 23 and September 5 amendments, to this Commission, 
also a statement dated July 26, 1947 wherein they announced their intentions 
to seek the same measure of increases intrastate as might be authorized 
thereunder by the Interstate Commerce Commission, An investigation into 
the matter was announced by the Interstate Commerce Commission under 
Docket Ex Parte No. 166. Our correspondingly assigned Docket No. was 
4184 as shown in the heading hereof. The railroads, in their petition, 
sought a general increase of 15 per cent within Southern Territory, with 
numerous deviations which would produce somewhat less as to all traffic. 
On September 1, 1947 non-operating railroad employees were awarded an 
increase in wages of 15j^ cents per hour. Upon consideration of this and 
other further increased expenses, the railroads filed the September 5th 
supplemental petition in Ex Parte 166, raising the general increase sought 



Decisions and Adjustments of Complaints 215 

in the South from 15 to 28 per cent, and announcing their intention 
of moving for an immediate temporary emergency 10 per cent increase to 
remain in effect until the day when such rates as may be authorized in Ex 
Parte 166, should become effective in all freight charges except on coal and 
coke on which an increase of 10 cents per net ton and 11 cents per gross 
ton and except on iron ore on which an increase of 10 cents per ton, net 
or gross, would be asked. A copy of the motion was filed with this Commission 
on September 13, 1947. along with an announcement of their intentions to 
seek the same emergency increase within the state as the Interstate Commerce 
Commission authorized. The order in Docket Ex Parte No. 166 dated October 
6, 1947. authorized the temporary emergency increases sought, except as to 
protective services, to become effective upon not less than three days' notice, 
all matters pertaining to the full increase sought being reserved for later 
consideration. Formal petition embodying the Interstate Order was filed with 
this Commission on October 9, 1947. Telegraphic request was received on 
October 8. 1947. for relief from the provisions of General Statute 62-126 (30 
days' notice statute) for authority to make the increases within the state 
effective on less than statutory notice and simultaneous with the interstate 
increases which were to become effective on October 13, 1947. Upon consideration 
of the facts ; that the interstate report and order rested soundly on an 
extensive record which comprehended the urgency of both intrastate and 
interstate revenue needs and reflected benefit of counsel with the cooperating 
committee of state commissioners which participated in the proceedings ; that 
no opposition was apparent on the part of shippers or shipper organizations 
in the state, the authority sought, except as to pulpwood rates, was granted 
in telegraphic information dated October 10, 1947 and the increases became 
effective on October 13. 1947. Pulpwood was excepted because increases in 
rates on that commodity were under consideration in Docket No. 4058. 

The railroads further amended their July 3, 1947 petition in Docket Ex Parte 
166 on December 3. 1947. by generally raising the increases sought. That 
sought within the South being raised to 31%, subject to upwardly revised 
"holddowns". This amendment was designed to cover increased operating 
expenses of Class I railroads, estimated to be $164,700,000 over and above 
those which occasioned the original petition and the previous amendments. 
Petitioners cited an increase of 15^ cents per hour in the rates of pay 
and changes in working rules of conductors and trainmen which became 
effective November 1. 1947. and the same amount of increase in wages of 
operating employees, locomotive engineers, fireman and switchmen with similar 
changes in working rules which had already been offered by the railroad 
managers ; and the resultant increases in payroll taxes. 

On December 29. 1947. the Interstate Commerce Commission issued its 
second report in Docket Ex Parte No. 166. The following quotations were 
extracted from a mimeograph copy of said report : 

On sheet 2 : 

"After the increased temporary rates had become effective hearings 
were resumed at Chicago, 111., November 3, 1947, and continued until 
November 13. Thereafter hearings were conducted at Boston, Mass., 
Montgomery, Ala., Salt Lake City, Utah, Los Angeles, Calif., Portland, 



216 N. C. Utilities Commission 

Oreg., and Fort Worth, Tex. Hearings were resumed in Washington on 
December 8, 1947, and were concluded December 13, 1947. Oral argu- 
ment was heard by the Commission from December 15 to 20, inclusive. 
In addition to hearing the testimony of several hundred witnesses during 
this series of hearings, and hearing more than 80 counsel in oral 
argument, we have received several hundred verified statements in lieu 
of the personal appearance of parties as witnesses, and a large number 
of briefs either supplementing oral argument or in lieu thereof. 

Throughout the further proceedings described we have had the cooperation and 
assistance of the committee of State regulatory commissioners who are 
named in our former report, page 39. It is our understanding that the 
members of that committee concur generally in our present conclusions 
as later stated in this report." 

On Sheet 5: 

"Obviously this record and these issues must be carefully examined and 
weighed before permanent or continuing changes are made which involve 
the rate structure of the whole country. It is our intention to proceed 
as diligently as possible with such examination. 

We are convinced, however, that there is need for immediate action 
permitting further substantial increases in the rates and charges of the 
petitioning carriers and interveners. 'We are of the opinion that such 
action should be taken without awaiting the completion of a further study 
of the large and detailed record before us. Accordingly, these increases 
will be authorized for a limited period, during which such study can 
be made, and this action will be without prejudice to the conclusions 
which may be reached upon a consideration of the record in all its details." 

In finding 2 of said report, a general increase of 20% in charges in lieu 
of the former 10% was authorized. Findings 4 and 5 authorized increases 
in stated amounts per ton in rates on, coal, coke, ores, and concentrates, 
instead of the 20%. 

By petitions embracing the report above referred to in the form of an 
appendix, filed January 5 and January 10, 1948 the railroads, petitioners herein, 
sought authority to establish within the state, on less than statutory notice, 
the same measure of emergency, interim increases as were authorized in said 
report. Several protests to the proposed further increase were received by the 
Commission, and the matter was set and heard in its hearing room in 
Raleigh on March 1, 1948. Upon consideration of the facts adduced, the 
Commission, on March 31, 1948, authorized publication of the additional increase 
sought in the petition upon 10 days notice, except no increase was authorized 
in charges on pulp and extract wood and on sand, gravel, crushed stone 
and related articles. No increase was authorized in charges on pulpwood 
because rates on -that commodity were still the subject of investigation under 
Docket No. 4058, and before authorizing further increases in rates on extract 
wood the Commission decided to study further what relationship, if any, 
such rates should bear to whatever rates should result from the Docket 4058 
proceedings. The evidence introduced at the March 1, 1948, hearing appeared 



Dfxisions* and Adjustments of Complaints 217 

to show that, the rates on sand, gravel, crushed stone, etc., if increases as 
proposed might become unreasonable in relation to the relatively low value, 
low susceptibility to loss and damage and other transportation characteristics 
of these commodities. The Commission determined to further study the effect 
of the proposed increases on them, due attention to be given to the necessity, 
if any, for a complete overhaul of the scale of rates. 

On April 13, 1948, the Interstate Commerce Commission handed down a 
further decision in Docket Ex Parte No. 166, in which the interim emergency 
increase within the South was made 25% in rates, in lieu of the formerly 
authorized 20% in charges, and again numerous "hold downs" as to various 
commodities or commodity groups were required. The following expressions, 
extracted from Sheets 4 and 5 of the mimeographed report thereof contain 
the pertinent conclusions of that Commission which led to this further order: 

"In short, the situations of emergency which led to our interim 
orders in this proceeding are repeated, despite the successive marked 
rate increases that have gone into effect. The impact of the conditions 
indicated is most severe in the East, severe in the South and western 
trunk-line territory, and threatening in the remainder of the country. 
However, they have not had the same effect upon all carriers, and 
certain of the largest and most important systems are among those 
most severely affected. In an appendix we set out the latest available 
operating ratios of the largest lines for comparable months 1946, 1947, 
and 1948, and certain other selected statistical data, which speak for 
themselves. 

There is available but one immediate corrective for this situation 
under the Interstate Commerce Act: a further substantial increase 
in freight rates and charges. That remedy must be applied, although 
we have not completed the readjustments of the freight rate structure 
of the country necessitated by the successive large increases in basic 
rates involved in this proceeding. This is both a revenue case and 
a rate case. How great and how difficult is the rate readjustment 
feature of this proceeding— and how important to the commerce of the 
country— is, we ^ear, not generally understood. We must, however, 
presently deal with the revenue features of the case so as to carry 
out the intent of Congress to maintain an adequate national transporta- 
tion system, and in doing so we apply the standards of the Interstate 
Commerce Act to all portions of the rate structure, to the full extent 
that it is practicable to do so in a proceeding of this character 
at this stage. 

In the circumstances, and since further time will be required to 
evaluate properly the voluminous record upon the many rate issues 
before us, we conclude that an immediate additional increase as 
hereinafter set out, is and will be just and reasonable, and is 
required to meet the purpose of the national transportation policy 
and to conform to the standards of section 15a (2) of the Interstate 
Commerce Act, and that the rates and charges so increased should 
continue until our further order." 



218 N. C. Utilities Commission 

The emergency situations were, of course, not confined to interstate transpor- 
tation by railroad. 

A supplemental petition, embodying the above described order, was filed 
with this Commission on April 27, 1948, in which the petitioners herein 
sought the same measure of additional increases within the state as were 
authorized interstate on April 13, 1948. The Commission's calendar of hearings 
assigned was crowded at that time, largely with cases arising under the 
1947 Truck Act, and due to this condition it was not practicable to set 
the railroads' petition for hearing prior to August 3, 1948. In the meantime, 
on July 27, 1948, the final report and order of the Interstate Commerce 
Commission in Docket No. Ex Parte 166 was issued. It appeared that a 
further supplemental intrastate petition seeking corresponding rate revisions 
was imminent so, in order to avoid two hearings in a short interval of time, 
when one might well suffice, the August 3rd hearing was indefinitely postponed 
on July 30, 1948. The anticipated supplemental petition with the July 27th 
order attached and designated, "Exhibit A", was filed on August 5, 1948, 
and it along with the preceding one was set for hearing in the Commission's 
hearing room in Raleigh, N. C. on September 9, 1948, and was heard as 
scheduled. Under the July 27th order, as amended, which was also received 
into evidence in this proceeding as Exhibit 1, the Interstate Commerce 
Commission did not authorize any change from the general 25% increase 
in rates in the South, provided in the April 13th order, but did revise the 
numerical increases and "hold-downs" on specified commodities to an extent 
estimated to yield the railroads in the United States an additional increase 
of 1K% in revenue over and above the cumulative 21.4% estimated to have 
resulted from the first three orders in Docket Ex Parte No. 166, producing 
a cumulative increase estimated to result from the four orders of 23.3%. 
The following appear in Exhibit 1 : 

On Sheet 23: 

"The petition under consideration is not for permission to increase 
rates for a limited or short period ; it is that we grant continuing 
permission to maintain sharply increased rates indefinitely, until petitioners 
themselves change them voluntarily or are forced, to do so by formal 
proceedings against them under the act." 

On Sheets 62 and 63: 

"Considering the entire record upon this feature of the proceeding, 
we conclude that the orders heretofore entered, especially when action 
by the state authorities is finally completed upon the carriers proposals, 
meet the emergency needs of the petitioning carriers, as shown by the 
record, supplemented by examination of the reports and returns which 
we are privileged to use under the general stipulation." 

On Sheets 85 and 86: 

"The consequence is that while we have a voluminous record, careful 
inspection shows it is not presently desirable to attempt to convert 
this proceeding into a general investigation of the justness and reasonableness 
and the non-preferential and non-prejudicial character of the whole rate 
structures of the United States applicable to numerous individual commodi- 



Decisions and Adjustments of Complaints 219 

ties. To deal with the thousands of those commodities moving in 
commerce so that we may exercise the legislative power of prescribing 
rates or rate relations which will conform in all respects to the Interstate 
Commerce Act, would require much more information with respect to 
many of the important commodities involved than is now before us. To 
obtain it would necessarily consume such an amount of time as to render 
futile the accomplishment of the basic purposes of the present 
investigation. ... 

"We have the assurance of the petitioners of their intention to proceed 
by voluntary discussion and cooperation with the shippers and representatives 
of markets, to devise and endeavor to put into effect such measures as 
will restore former competitive relations as completely as possible. We 
expect full and prompt compliance with these representations, in the 
spirit of the proceeding. Restoration of rate relations should not be 
made the excuse for further increasing revenues or of bettering the 
competitive situation of the carriers." 

As an underlying basis for these and other conclusions and findings, the 
Interstate Commerce Commission set up operating statistics for a "constructive, 
normal" year, composed, as to Class I Railroads of the United States as a 
whole, principally of : 725,498.3 million traffic units (ton-miles plus twice 
the number of passenger-miles) and the 1947 volume of mail, express and 
other traffic, estimated to produce an aggregate of 9,984.6 million dollars of 
operating revenue at a cost of 7,538.9 million dollars of operating expenses, 
resulting in an operating ratio of 75.51 percent; 1,103.8 millions of dollars 
in tax payments; 166.7 millions of dollars debit balance in equipment and 
joint facility rents; 1,175.2 millions of dollars net railway operating revenue; 
20,622.7 millions of dollars rate base value ; 5.70 percent rate of return and 
878.4 millions of dollars in net income. 

Figures similarly derived and relied upon with regard to the Southern 
Region, which embraces the State of North Carolina are : 96,834.3 million 
traffic units and the 1947 volume of mail, express and other traffic, estimated 
to produce an aggregate of 1,359.8 million dollars of operating revenue at a 
cost of 1,068.2 million dollars of operating expenses, resulting in an operating 
ratio of 78.56 percent; 138.2 millions of dollars in tax payments; 12 million 
dollars debit balance in equipment and joint facility rents; 141.4 millions 
of dollars net railway operating revenue; 2,819.1 millions of dollars rate 
base value ;5. 02 percent rate of return and 93.7 millions of dollars in net 
income. The position of the Southern Region railroads after the authorized 
increases compares unfavorably with that of all railroads of the United 
States taken as a whole. Both sets of foregoing figures presuppose that 
generally similar increases will be permitted by state authorities on intrastate 
traffic, or may become effective otherwise, and the discontinuance of land 
grant rates, increased Express privilege payments, increased railway mail pay 
and generally increased rates and fares authorized in cases of somewhat 
narrower scope than Ex Parte 166 were all duly allowed for in the 
computation of said figures. The cooperating Committee of State Commissioners 
concurred in the final report in Docket Ex Parte No. 166. 



220 N, C. Utilities Commission 

Inasmuch as the rates on pulpwood in carloads is before the Wake County 
Superior Court on appeal by the Atlantic Coast Line Railroad Company 
and the Seaboard Air Line Railroad Company, evidence respecting application 
of the interim and final increases on that commodity as a general revenue 
measure was excluded at the final hearing of this series which was held 
September 9. 1948. Any further increase on this commodity which the 
carriers may be in a position to justify should await judgment of the Court. 
At least, we firmly believe in the propriety of that attitude with respect to 
the two appealing carriers. They have taken the matter out of our hands. 
However, the circumstances are quite different as to the non-appealing trunk 
lines, and the short lines, in fact, upon inquiry the short lines have been 
advised by us that the door is open to them. On many commodities 
the short lines are allowed to charge arbitraries over the trunk rates but 
at the hearing on pulpwood rates in Docket No. 4058 they made no representa- 
tions as to arbitraries, apparently leaving the burden to the trunk lines upon 
whose tracks the pulp mills are located, but it is our understanding that 
they will proceed before us in the immediate future in a rate proceeding 
rather than as a revenue proceeding. 

It Is Ordered, That the application upon which a hearing was held September 
9. 1948 for authority to substitute an increase of 25 percent generally with 
differing adjustments on specified commodities as stated in said application, 
in lieu of the general increase of 20 percent qualified as heretofore authorized, 
be, and the same is hereby granted except that no increases are allowed 
on pulpwood and extract wood in carloads, and that no increases are permitted 
on crushed stone, gravel, sand, etc., usually referred to as Road Aggregates 
whether in closed cars, in packages, or in open cars with or without covers. 

It Is Further Ordered, That the increases herein authorized be and the 
same are permitted to be filed and posted in the usual manner upon not less 
than 5 days from the date hereof. 



By the Commission. 

This 28th day of October, 1948. 



Docket No. 4184 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



PETITION OF THE ATLANTIC AND EAST CAROLINA RAILWAY 
COMPANY FOR AUTHORITY TO INCREASE ITS CARLOAD RATES 

ON LOGS. 

Order Of Dismissal 

Upon consideration of request by the Atlantic and East Carolina Railway 
Company, and good cause appearing therefor, the original petition in this 
matter wherein the Atlantic and East Carolina Railway Company applied 
for authority to increase its rates on logs in carloads, is dismissed without 
prejudice to petitioner's right of renewing same at some future date. 

By Order Of The Commission. 

This 23rd day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3984 



Decisions and Adjustments of Complaints 221 

ATLANTIC COAST LINE RAILROAD COMPANY 

DISCONTINUANCE OF AGENCIES AND STATION FACILITIES 

APPLICATIONS OF ATLANTIC COAST LINE RAILROAD COMPANY 

AND THE RAILWAY EXPRESS AGENCY FOR AUTHORITY TO 

DISCONTINUE AGENCY SERVICE AT BLACK CREEK, N. C. 

Order 

Appearances : Murray Allen, F. B. Langley, for applicant. 

Wade A. Gardner for the Town of Black Creek. 

H. L. Keller for the Order of Railroad Telegraphers. 

By applications filed December 16, 1947. and February 18, 1948, the Atlantic 
Coast Line Railroad Company and Railway Express Agency, respectively, 
seek authority to discontinue agency service at Black Creek, N. C. Affidavit 
attached to the application shows compliance with the 10-days notice requirement 
of Practice Rule 13. Upon consideration of a protest on behalf of the 
citizens of the Town of Black Creek the matter was assigned and heard at 
Pitt County Court House in Greenville. N. C. on March 3. 1948. 

Black Creek is intermediate to agency stations, Wilson and Fremont on 
applicant's Contentnea to Wilmington line being 6.1 miles from the former 
and 6.8 miles from the latter. Its population under the 1940 Census was 333. 
Black Creek is located on a hard surface highway 0.8 of a mile east of 
U. S. Highway 117, which connects Wilson, Goldsboro, Mount Olive, Warsaw 
and Wilmington. Via hard surfaced highway Black Creek is approximately 6 
miles from Wilson. 10 miles from Fremont and 5 miles from Lucama, an 
agency station on Applicant's main North- South route between Richmond, Va. 
and Jacksonville, Fla. It is served directly by public and private freight 
carriers and at a distance of 0.8 of a mile by bus line, which affords six 
northbound and six southbound schedules per day. 

During the 24-months period ending with November. 1947, Applicant received 
from carload freight forwarded, $415.42 and from carload freight received 
$5,848.14 or averages of $17.32 and $243.80 per month, respectively. That 
received from less carload freight during the same period was $4.50 forwarded 
and $589.22 received or averages of $ .19 and $24.56 per month, respectively. 
Revenue received from passengers leaving Black Creek by applicant during 
the same 24-months period was $861.58 or an average of $35.90 per month. 
During the 24-months period ending with January 1948 the Railway Express 
Agency received $1762.50 for handling 1200 shipments at Black Creek or 
an average of $73.40 per month. It cost an aggregate of $208.05 to handle 
this business or an average of $8.66 per month. The Railway Express 
Agency maintains joint agency service with the Atlantic Coast Line Railroad 
and represents that the revenue from its business is not sufficient to justify 
maintenance of an exclusive express agency in the event of discontinuance 
of the service by the Atlantic Coast Line Railroad. 

The proposed discontinuance will have no adverse effect on the convenience 
of passengers. Under the present arrangement tickets are purchased from the 



222 N. C. Utilities Commission 

Agent, while under the proposal fares will be paid directly to the conductors 
on the trains. As to carload traffic forwarded, of which there was very 
little during the 24-months period above specified, empty cars will have 
to be ordered either from the conductors on passing freight trains or from 
adjacent agency stations. Thus, some additional inconvenience will occur 
under this part of the proposal. The only change required in inbound carload 
traffic will be that charges will have to be prepaid. The same is true of 
inbound less carload freight which will be set out on the platform by the 
train crews and left there for consignees to pick up. Less carload forwarded 
freight traffic is practically negligible. 

Upon consideration of these matters the Commission has concluded that the 
public convenience and necessity do not require future maintenance of agency 
service by the Atlantic Coast Line Railroad Company and the Railway Express 
Agency at Black Creek, N. C. Therefore, 

It Is Ordered, That the Applications herein be and same are hereby 
approved. 

By Order Of The Commission. 

This 8th day of July, 1948. 

Chas. Z. Flack, Ckie] Clerk 
Docket No. 4250 



APPLICATION OF THE ATLANTIC COAST LINE RAILROAD FOR 

AUTHORITY TO ABANDON AND DISMANTLE THE COVERED 

PLATFORM AT BLOUNT, NORTH CAROLINA. 

Order 

By application filed May 1, 1947, the Atlantic Coast Line Railroad Company 
seeks authority to abandon and dismantle its covered platform at Blount, 
North Carolina. Affidavit attached to the application indicates compliance with 
the ten-days-notice requirement of Practice Rule 13. 

No protests to the proposed dismantlement have been received by the 
Commission. 

Blount is a non-agency station on applicant's Pender to Kinston line, 
intermediate to agency stations Parmele and Greenville, North Carolina, being 
1.6 miles from the former and 13.4 miles from the latter. 

The facility involved is in need of repairs estimated to cost $339.00. 
There is no passenger train service on applicant's Pender to Kinston line. 
No use is made of the covered platform in the handling of carload traffic. 

Applicant received an aggregate of $1.21 from less carload traffic forwarded 
from and received at Blount during the twenty-four months' period, February 
1945 to January 1947, inclusive. 



Decisions and Adjustments of Complaints 223 

Upon consideration of the facts presented, the Commission has concluded 
that the pubHc convenience and necessity do not require the maintenance of 
the covered platform at Blount, North Carolina. Accordingly, 

It Is Ordered, That the application herein be, and the same is hereby, 
approved. 

By Order Of The Commission. 

Tliis 3rd day of June, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 
COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE THE 
COVERED PLATFORM AT BLOUNT CREEK, NORTH CAROLINA. 

Order 

By application filed February 14, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its covered platform at 
Blount Creek, North Carolina. Affidavit attached to said application indicates 
compliance with the ten-days-notice provisions of Practice Rule 13. 

No protests were received by the Commission and the responses of individuals 
living in the vicinity of Blount Creek to questions of a member of the 
Commission's staff revealed no opposition to the proposed abandonment and 
dismantlement. 

Blount Creek is a non-agency station on Applicant's Parmele to Vandemere 
line, intermediate to agency stations Washington and Aurora, North Carolina, 
being 18.3 miles from the former and 10.4 miles from the latter. 

Carload freight traffic will be affected in no way if the shed is removed. 

During the twenty-four months period, December 1944 to November 1946, 
inclusive. Applicant received an aggregate of $35.09 or an average of $1.46 a 
month from inbound less carload freight. There was no less carload freight 
forwarded from Blount Creek during the same period. 

Aggregate passenger revenue accruing to applicant from passenger travel 
from Blount Creek during the said twenty-four months period was $9.36 or 
an average of 39 cents per month. 

Estimated cost of repairs needed by the facility under consideration is $446.00. 

Upon consideration of the facts presented, the Commission has concluded 
that there is not sufficient public convenience and^^^ f^-- -^ y involved to require 
maintenance of the covered platform at ^P{^g g^p^; _n';f^ North Carolina. 

It Is Ordered, That the application herei.^be, and same is hereby, approved. 

By Order Of The Commission. 

This 26th day of May, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 



224 N. C. Utilities Commission 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 

FOR AUTHORITY TO ABANDON AND DISMANTLE ITS STATION 

FACILITIES AT BUNN, NORTH CAROLINA. 

Order 

By application filed July 21, 1947, the Atlantic Coast Line Railroad Company 
seeks authority to abandon and dismantle its stations facilities at Bunn, 
North Carolina. Affidavit attached to the application indicates compliance 
with the Commission's ten-day's notice rule No. 13 in the Commission's Rules 
of Practice and Procedure. 

Bunn is a non-agency station located on Applicant's Rocky Mount to 
Lassiter Line intermediate to Spring Hope and New Hope. Being 9 miles 
from the former (the nearest agency station) and 5^ miles from the 
latter. 

No protest against the proposed abandonment and dismantlement has been 
received by the Commission. An investigation at and in the vicinity of Bunn 
conducted by a representative of the Commission revealed very little interest 
in the application. 

The facilities involved are in need of repairs estimated to cost $518. 

The only traffic that will be affected if the application is approved will 
be less carload freight for which applicant received an average of $13.40 
per month during the two-year period, April, 1947, to March 1947, inclusive. 

Good cause appearing, therefor, 

It Is Ordered, That application herein be and same is hereby approved. 

By Order Of The Commission. 

This 29th day of August, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

COVERED PLATFORM AT CASH CORNER, N. C. 

Order 

By application file, . -'l 26, 1948, the Atlantic Coast Line Railroad 
Company seeks authl^ ^.'" "*^'"'^ -^l^n and dismantle its covered platform at 
Cash Corner, N. C. Affida^i. a..., -. .^jvv^ to said application indicates compliance 
with the ten-days-notice requirem. ^\ of Practice Rule 13. No opposition 
to the proposed abandonment and dismantlement has been expressed to the 
Commission. An investigation of the matter by an employee of the Commission 
revealed no opposition on the part of residents in the vicinity of Cash Corner. 

Cash Corner, a non-agency station is located between agency stations Aurora 



Decisions and Adjustments of Complaints ■ 225 

and Vandemere, N. C, and is a distance of 1.4 miles from Vandemere and 
10.1 miles from Aurora on Applicant's Parmele to Vandemere line. The 
platform is badly in need of repairs estimated to cost $136.00. 

During the 24 months period ending with January 31, 1948, Applicant 
received on less carload freight forwarded and received $315.69 or an average 
of $13.00 per month. The corresponding figure on carload freight forwarded 
and received was $26,143.49 or an average of $1,089.00 per month. However, 
this entire business was handled by the agent at Vandemere which as heretofore 
stated is only 1.4 miles from Cash Corner. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the platform at Cash Corner. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order Of The Commission. 

This 23rd day of September, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 
COMPANY FOR AUTHORITY TO DISCONTINUE CARETAKER^ 
SERVICE AND ABANDON AND DISMANTLE ALL FACILITIES 
EXCEPT COVERED PLATFORM AND RAMP AT CLARENDON, N. C. 

Order 

By application filed March 2Z, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to discontinue caretaker service and abandon and 
dismantle all facilities except the covered platform and ramp at Clarendon, 
N. C. Affidavit attached to the application shows compliance with the ten-days- 
notice requirement of Practice Rule 13. No opposition to the proposal has 
been expressed to the Commission. An investigation of the matter by an 
employee of the Commission revealed no opposition on the part of residents 
in the vicinity of Clarendon. 

Clarendon is located between agency stations Chadbourn and Tabor City, 
N. C, a distance of 8.9 miles from Chadbourn and 4.8 miles from Tabor 
City on applicant's Elrod to Myrtle Beach Line. 

Statement of freight revenue accruing to applicant for a period of 24 months 
ending November 30, 1947, submitted with the application, shows total revenue 
on less carload freight forwarded and received to be $259.62 or an average 
of $10.81 per month. The revenue on Carload Freight forwarded and received 
was $5,034.44 or an average of $209.76 per month. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 



226 - N. C. Utilities Commission 

of caretaker service, nor does the public convenience and necessity require 
maintenance of an office, waiting rooms and warehouse at Clarendon, N. C. 
Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order Of The Commission. 

This 11th day of October. 

Chas. Z. Flack, Chief Clerk 
Docket No. 185 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 

AUTHORITY TO DISCONTINUE MAINTENANCE OF CARETAKER 

SERVICE AT DONNAHA, NORTH CAROLINA. 

Order 

By application filed December 7, 1946, the Southern Railway Company 
seeks authority to discontinue maintenance of caretaker service at Donnaha, 
North Carolina, a non-agency station. 

In compliance with the provisions of the order in the above docket dated 
August 1, 1938, applicant is maintaining caretaker service at Donnaha, at a 
cost of $13.62 per month. 

The average revenue per month from less carload freight received at 
this station was $16.02 for the twelve months ending with November 1946. 
The caretakers perform no duties relative to carload freight. 

A member of the Commission's staff investigated the situation at Donnaha, 
and found no objection to the proposed discontinuance on the part of the 
residents there. 

Upon consideration of the facts, the Commission has concluded that the 
application should be approved. It should be clearly understood, however, that 
such approval does not include authority to discontinue the station, which is 
to be retained for the handling of both carload and less carload freight. 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 

This 11th day of February, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 1274 



Decisions and Adjustments of Complaints 227 

APPLICATIONS OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY AND THE RAILWAY EXPRESS AGENCY, 

INCORPORATED, FOR AUTHORITY TO DISCONTINUE AGENCY 

SERVICE AT EVERETT, NORTH CAROLINA. 



Order 



Appearances : 



Murray Allen and F. B. Langley for applicant Atlantic Coast 
Line Railroad Company, H. C. Hickman for applicant Railway 
Express Agency, Incorporated, Hugh C. Horton for the Town 
of Everett, protestants and H. L, Keller for Order of Railway 
Telegraphers, protestants. 

By applications filed August 21, 1947 and September 19, 1947, respectively, 
the Atlantic Coast Line Railroad Company, and the Railway Express Agency, 
Incorporated, seek authority to discontinue agency service at Everett, N. C. 

Upon consideration of a letter on behalf of the citizens of Everett 
protesting the proposed discontinuance, the Commission announced and held 
a hearing in the matter at the Pitt County Court House in Greenville, N. C. 
on March 4, 1948. Appearances were as indicated above. 

Everett is located on the Tarboro-to-Plymouth line of the Railroad intermediate 
to agency stations, Robersonville and Williamston, being 4.7 miles from the 
former and 6.6 miles from the latter. Hard surfaced U. S. Highway 64 
passes through Everett, paralleling the Railroad between Robersonville and 
Williamston at a distance not greater than a half mile, air line, at any 
point. Regular route service by a motor freight carrier of general commodities 
is afforded Everett and other communities in its vicinity along said highway. 
No passenger trains are operated by the Railroad over its Tarboro-to-Plymouth 
line. Hence, the public convenience and necessity as related to passenger 
travel is not here involved. During the twenty-four months period ended with 
November 1947, the Railroad received an aggregate of $169.21, or an average 
of $7.05 per month, from carload freight forwarded. During the same period 
it received an aggregate of $35.98 or an average of $1.50 per month from 
less carload freight forwarded. The shipper insofar as the latter, almost 
negligible traffic is concerned would not be greatly inconvenienced by the 
proposed discontinuance. Certainly any resulting inconvenience would be highly 
infrequent and not of a constant nature. The principal effect the proposal 
will have on received (inbound) traffic is that prepayment will be required 
on all shipments. Less carload received traffic will have to be set out on the 
open platform for consignees to pick-up instead of being handled through 
the warehouse by the agent. During the twenty-four months period stated 
above the railroad received an aggregate of $8,717.89 or an average of $363.30 
per month from carload received traffic. Similar figures as to less carload 
received traffic are: $1,197.33 and $49.90. The Railroad agent's salary at 
Everett is approximately $189 per month. Other miscellaneous station expenses 
such as stationary, fuel, etc. ranged between $10, and $15 per month. 



228 



N. C. Utilities Commission 



The railroad agent at Everett is also agent for the Express Agency. 
The latter received an aggregate of $1,515.04 from business handled at 
this station during the twenty-four months period ending with August 1947. 
This is an average of $63.10 per month. Corresponding figures of expense 
were $166.65 and $6.95. The Express Agency stated that the revenue received 
at Everett was not sufficient to justify maintenance of an agent for its 
business exclusively. 

In considering these matters, it appears that the relation of the expense 
incurred by the railroad in maintaining agency service for the local public 
is disproportionate to the actual need and use made of that service and is 
therefore contrary to the interest of the general public. Based on this opinion, 

It Is Ordered, That the applications herein be, and the same are hereby, 
granted. 



By Order of the Commission. 
This 17th day of July, 1948. 

Docket No. 2155 



Chas. Z. Flack, Chief Clerk 



APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 

FOR AUTHORITY TO ABANDON AND DISMANTLE ITS STATION 

FACILITIES AT FREEMAN, N. C. 



Order 



Appearance: F. B. Langley, for Applicant, 

By application filed January 23, 1947, Atlantic Coast Line Railroad Company 
seeks authority to abandon and dismantle its station facilities at Freeman, 
N. C. Affidavit attached to application indicate that the ten-day's notice 
requirement of Practice Rule No. 13 had been complied with. 

Several letters were received by the Commission from individuals expressing 
objections to the proposed abandonment and dismantlement. Accordingly, the 
matter was set and came on for hearing in the Commission's Hearing 
Room in Raleigh on September 25, 1947, with the appearance for applicant 
indicated above. None of those who had expressed objections, appeared. 

Freeman is a non-agency station located on Applicant's Wilmington to Pee. 
Dee. Line intermediate to agency stations Delco and Bolton, N. C, being 
3.7 miles from the former and 6.6 miles from the latter. 



Motor Freight service by carriers operating along the highway paralleling 
applicant's line is available at Freeman. 

The building which applicant proposes to abandon and dismantle is composed 
of an open platform approximately six feet three inches by thirty-two feet 
and an enclosed station approximately 24 feet by 25 feet. It is in need of 
repairs estimated to cost $150. 



Decisions and Adjustments of Complaints 229 

Carload freight to and from Freeman will not be affected if the building 
is dismantled. During the 12 months period ended with October 1945, the 
revenue received by applicant from less carload freight forwarded was $41.18, 
an average of $3.43 per month. During the 12 months ended with October 
1946 no less carload freight was forwarded from this point. During the 
24 month period ending with October 1946 the aggregate received by- 
applicant from less carload freight received at Freeman was $266.82, an 
average of $11.11 per month. There is no prospective increase in freight 
business to and from Freeman in the foreseeable future. 

Upon consideration of the foregoing facts the Commission has concluded 
that the public convenience and necessity does not require maintenance of 
the facilities involved. Accordingly, 

It Is Ordered, That the application herein be and the same is hereby 
approved. 

By Order of the Commission. 

This 4th day of October, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

IN THE MATTER OF 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE AGENCY SERVICE 

AT HASSELL. NORTH CAROLINA, EXCEPT DURING THE MONTHS 

OF MAY. JUNE, AND JULY. 

Order 

Appearances : 

Murray Allen. F. B. Langley, for applicant railroad. 

H. E. Hickman for applicant Express Company. 

Hugh G. Horton for the town of Hassell, protestant. 

H. L. Keller for the Order of Railroad Telegraphers, protestant. 

By application fded on June 26. 1947. the Atlantic Coast Line Railroad 
Company seeks authority to discontinue agency service at Hassell, North 
Carolina, except during the potato shipping season, viz : the months of May, 
June, and July. Affidavit attached to the application indicates compliance 
with the 1 0-day s-notice requirement of Practice Rule 13. Letters of protest 
were received by the Commission and upon consideration of these, the matter 
was set and heard at the Pitt County Courthouse in Greenville, North 
Carolina, on March 4, 1948, with appearances indicated above. 

Hassell is located on applicants Pender to Kinston line intermediate to 
Hobgood and Parmele, both of which are agency stations, being 11.3 miles 
from the former, and 4.6 miles from the latter. Applicant does not furnish 
passenger service at Hassell, therefore, the public convenience and necessity 
in that regard will not be affected by the proposed discontinuance. During 



230 N. C. Utilities Commission 

the 24 months period ending with November 1947, apphcant received an 
aggregate of $14.59 from less carload freight forwarded from Hassell. This 
is an average of approximately $ .61 per month. From less carload freight 
received at this station, applicant's proportion of the revenue for the same 
twenty-four months, was $425.35. or an average of $17.73 per month. This 
portion of the traffic will be affected by the proposed discontinuance, to the 
extent that charges will necessarily have to be prepaid at origin. Charges 
on carload freight received will likewise have to be prepaid at origin, but 
this type of traffic does not require agency service for convenient delivery. 
Applicant proposes to maintain an agent at Hassell during the potato 
shipping season, when many carload shipments are made. 

Upon consideration of the foregoing matters, the commission concluded 
that the future maintenance of agency service at Hassell, except during the 
months of May, June, and July, are not required by the public convenience 
and necessity, therefore. 

It Is Ordered, That Atlantic Coast Line Railroad and Railway Express 
Agency, Inc.. be and the same are hereby relieved of maintaining agency 
service at Hassell except said applicants are required to maintain agency 
service at Hassell during the months of May, June, and July. 

By Order of the Commission. 

This 16th day of July, 1948. 

Chas. Z. Flack. Chief Clerk 
Docket No. 1720 

PETITION ON BEHALF OF CITIZENS AND CUSTOMERS OF THE 
ATLANTIC COAST LINE RAILROAD COMPANY TO REQUIRE 
RE-OPENING OF THE AGENCY AT HASSELL. NORTH CAROLINA. 

Order Granting Motion To Re-Open The Agency 

After hearing in Docket No. 1720 on an application of the Atlantic Coast 
Line Railroad Company for authority to discontinue agency service at 
Hassell, N. C. except during the potato season, the application was approved 
by order of July 16, 1948. Thereafter, the citizens and shippers of Hassell 
petitioned the Commission to require restoration of agency service. This matter 
was heard at Wilmington, N. C. on September 23, 1948. under Docket 
No. 4467. On October 1, 1948 the respondent carrier filed a motion to 
voluntarily re-open the station on the promise that the shippers there were 
utilizing respondent's service in the transportation of fertilizer, peanuts and 
tobacco, and said shippers had declared as their purpose the continued and 
increasing patronage of the railroad. Upon consideration of respondent's 
motion to re-open the agency at Hassell and good cause appearing; 

It Is Ordered, That the motion of respondent Atlantic Coast Line Railroad 
Company to restore the agency service at Hassell, N. C, be and the same 
is hereby granted and allowed without prejudice. 

By Order of the Commission. 

This 5th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4467 



Decisions and Adjustments of Complaints 231 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

ITS STATION FACILITIES AT KERR, N. C. 

Order 

By application filed March 12, 1948, Atlantic Coast Line Railroad Company 
; seeks authority to abandon and dismantle its station facilities at Kerr, N. C. 

Affidavit attached to the application indicates compliance with the ten-day's- 
notice requirement of Practice Rule 13. 

Opposition to the application was expressed to the Commission by Mr, 
'^ A. E. Bowen of Kerr, N. C, who is at present lessee of the property 

here considered. However, an agreement satisfactory to both Mr. Bowen 
and the Applicant has been reached and the opposition withdrawn. 

Kerr is a non-agency station located on Applicant's Fayetteville to Wilmington 
hne intermediate to agency stations Garland and Ivanhoe, being 10.9 miles 
from the former and 4.4 miles from the latter. 

Carload freight traffic and passenger traffic, will not be affected by the 
proposed abandonment and dismantlement. During the 24 months period 
ending with November 1947 there was no less carload freight traffic forwarded 
from Kerr, while during the same period Applicant received $112.43 or an 
average of $4.68 per month from less carload freight destined to Kerr. 

Upon consideration of these matters, the Commission has concluded that 
the public convenience and necessity do not require future maintenance of 
the station facilities at Kerr. Accordingly, 

It Is Ordered, That the application herein be, and same is hereby, 
approved. 

By Order of the Commission. 

This 19th day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

.STATION FACILITIES AT MICRO, N. C. 

Order 

By application filed January 8, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its station facilities at 
Micro, N. C. Affidavit attached to the application indicates compliance with 
the 10-day's notice requirement of Practice Rule 13. A letter of protest on 
behalf of the citizens of Micro was received, however, an arrangement to 
sell the facilities involved to Mr. C, A. Fitzgerald and to lease to him 
the land upon which it stands was agreed upon between applicant and Mr. 



232 N. C. Utilities Commission 

Fitzgerald and thereafter the protest was withdrawn. 

Micro is a non-agency station located on appHcant's main line intermediate 
to agency stations Keniy and Selma, being 5.1 miles from the former and 
4.9 miles from the latter. The facilities in question are in need of repairs 
as estimated to cost $966. The public convenience and necessity insofar as 
carload traffic is concerned will not be affected by the proposed abandonment 
and dismantlement. During the 24-months period, November, 1945, to October, 
1947, inclusive, the average revenue per month received by applicant from 
less carload freight forwarded was 17 cents. That for less carload freight 
received was $55.80. Upon consideration of these matters the Commission 
has concluded that the public convenience and necessity do not require the 
future maintenance of the station facilities at Micro, N. C. Therefore, 

It Is Ordered, That the application herein be and the same is hereby 
approved. 

By Order of the Commission. 

This 24th day of June, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 



APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 
FOR AUTHORITY TO DISCONTINUE CARETAKER SERVICE AT 

PALMYRA, N. C. 

Order 

By application filed April 29, 1948, the Atlantic Coast Line Railroad Company 
seeks authority to discontinue caretaker service at Palmyra, N. C. Affidavit 
attached to the application indicates compliance with the ten-day's-notice 
provisions of Practice Rule 13, 

There was no opposition to the proposal expressed to the Commission. 

Palmyra is located between agency stations Hobgood and Kelford on 
applicant's South Rocky Mount to Pinners Point Line being 4.2 miles from 
Hobgood and 10.4 from Kelford. 

Statement of freight and passenger revenue accruing to applicant for a 
period of 24 nK)nths ending August 31, 1944, submitted with the application, 
shows total revenue on less carload freight forwarded during this period 
to be only $5.99, an average of 25 cents per month. The revenue on carload 
freight forwarded was $447.63, an average of $18.65 per month. The revenue 
on less carload freight received was $576.75, an average of $24.03 per month. 
Revenue on carload freight received during the same period was $2986.32 
or an average of $124.43 per month. The total passenger revenue for this 
period was $1028.57, an average of $42.84 per month. The only categories 
of traffic that will be affected by the proposal are less carload freight 
forwarded and received. The effect (tii these will be very limited 



Decisions and Adjustments of Complaints 233 

Upon consideration of these matters the Commission has concluded that 
the pubhc convenience and necessity do not require future maintenance of 
this caretaker service. Accordingly, 

It Is Ordered, That the application herein be and the same is hereby approved. 

By Order of the Commission. 

This 9th day of August 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3201 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 

FOR AUTHORITY TO ABANDON AND DISMANTLE THE STATION 

FACILITIES AT PINE VIEW, NORTH CAROLINA. 

Order 

By application filed January 20, 1947, Atlantic Coast Line Railroad Company 
seeks authority to abandon and dismantle the station facilities at Pine View, 
North Carolina. Notice declaring applicant's intention of filing the application 
remained posted on the v^arehouse and office of the station at Pine View 
for a period of ten days, beginning with December 12, 1946. Affidavit attesting to 
this fact was attached to said application. 

No protests against the proposed abandonment have been received by the 
Commission. A member of the Commission's stafif visited Pine View and 
inquired of the residents in the vicinity thereof regarding their attitude 
toward the proposal. There appeared to be no objection. 

Pine View is a local, non-agency station on Applicant's Fayetteville to 
Sanford line, approximately eleven miles south of Sanford. During the twenty- 
four months period November, 1944, to October, 1946, Inclusive, there was 
no less carload freight forwarded from or received at Pine View. Applicant 
does not provide passenger service on Its Fayetteville to Sanford line. Hence, 
convenience or necessity of passengers Is not Involved. The proposed aban- 
donment will not afTect the movement of carload freight to or from Pine 
View. ' ^ "^ 

Upon consideration of the facts presented, the Commission has concluded 
that the application should be approved. Accordingly, 

It Is Ordered, That the application herein be, and the same is hereby, 
approved. 

By Order of the Commission. 

This 5th day of February, 1947. 



Chas. Z. Flack, Chief Clerk 



Docket No. 2512 



234 N. C. Utilities Commission 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

STATION FACILITIES AT SPRING HILL, N. C. 

Order 

By application filed March 2Z, 1948 the Atlantic Coast Line Railroad Company 
seeks authority to abandon and dismantle its station facilities at Spring Hill, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's notice provisions of Practice Rule 13. 

There was no opposition to the proposal expressed to the Commission. 

An investigation by a member of the staff of the Commission revealed 
that there was no opposition on the part of residents in the vicinity of 
Spring Hill. Spring Hill is a non-agency station located between agency 
stations Tillery and Scotland Neck, N. C. on applicant's Pender to Kinston 
line, being a distance of 4.2 miles from Tillery and 10.4 miles from Scotland 
Neck. 

A statement submitted with the application showed that no passenger 
revenue accrued at this point during the years 1946 and 1947, and that 
freight revenue on less carload shipments forwarded and received was only 
$1.32. There were no carloads forwarded and the revenue on carloads received 
during this two year period was $3543.49 or an average of $147.65 per 
month. The facilities in question are in need of repairs estimated to cost $642. 

Upon consideration of these matters the Commission has concluded that 
the public convenience and necessity do not require the maintenance of the station 
facilities at Spring Hill. Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 

This 16th day of August. 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 



APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

STATION FACILITIES AT SWANNS; N. C. 

Order 

By application filed August 18, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its station facilities at 
Swanns, N. C. Affidavit attached to said application indicates compliance 
with the ten-day's-notice requirement of Practice Rule \?). No opposition to 
the proposed abandonment and dismantlement has been expressed to the 
Commission. An investigation of the matter by an employee of the Commission 



Decisions and Adjustments of Complaints 235 

revealed no opposition on the part of residents in the vicinity of Swanns. 
Swanns, a non-agency station is located between agency stations Sanford 
and Fayetteville, being a distance of 8 miles from Sanford and 19.1 miles 
from Fayetteville on applicant's Sanford to Wilmington line. The building 
is badly in need of repairs estimated to cost $450.00. 

During the 24 months period ending with April 30, 1948 Applicant received 
on carload freight forwarded and received $2,090.90 or an average of $87.00 
per month. The corresponding figure on less carload freight forwarded and 
received was $1.77 or an average of $ .07 per month. There is no passenger 
service at this point. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of station facilities at Swanns. Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 

This 23rd day of September, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

ITS STATION FACILITIES AT TUNIS, N. C. 

Order 

By application filed August 12, 1947 the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its station facilities at 
Tunis, N. C, and to construct in lieu thereof a covered platform having 
dimensions of 12 feet and 16 feet. Said application was accompanied by an 
affidavit indicating compliance with the ten-day's notice requirement of Practice 
Rule 13. 

No protests to the proposed abandonment and dismantlement have been 
received by the Commission. An investigation by two representatives of the 
Commission revealed no opposition on the part of anyone living or doing 
business in the vicinity of Tunis, 

Tunis is a non-agency station located on applicant's South Rocky Mount 
to Pinners Point Line, 2.4 miles north of the nearest agency station, Cofield. 

The building which applicant seeks to remove is in need of repairs, estimated 
to cost $3,492. The average revenue per month from less carload freight to 
and from Tunis during the 24-nionths period ended with April, 1947 was 
70 cents and the average monthly passenger revenue for the same period 
was $30.01. 

Upon consideration of the facts presented the Commission has concluded 
that the public convenience and necessity do not require maintenance of 



236 N. C. Utilities Commission 

the present station facility at Tunis, N. C. provided, the applicant will construct 
in lieu thereof a covered platform measuring 12 by 16 feet. 

Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 

This 17th day of September, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2281 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

STATION FACILITIES AT VERONA, N. C. 

Amending Order 

The Order herein dated May 6, 1946, required as a condition of the 
Commission's approval of application for authority to abandon and dismantle 
the station facilities at Verona, that a standard booth be substituted in lieu 
thereof. 

Since the date of the above Order, applicant has petitioned the Commission 
to modify aforesaid Order in view of the fact that Verona is not served 
by any passenger trains and in view of the further fact that it would cost 
an estimated $178.00 to construct said booth. Upon consideration of these 
facts and after further investigation of the situation at Verona the Commission 
has concluded that said petition should receive favorable action. Accordingly, 
the ordering paragraph in the Order herein dated May 6, 1946, is hereby 
changed to read as follows : 

"It Is Ordered, That the application herein be and same is hereby approved." 

By Order of the Commission. 

This 23rd day of April, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 2512 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 
COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 
THE STATION FACILITIES AT WHITEHURST, NORTH CAROLINA. 

Order 

By application filed December 19, 1946, Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle the station facilities at 
Whitehurst, North Carolina. 

Notice, in compliance with Practice Rule 13, announcing the intention 
to file said application remained posted on the station building at Whitehurst 
for a period of ten days beginning with November 24, 1946. Affidavit 



Decisions and Adjustments of Complaints 237 

attesting to this fact was attached to the application. 

No protests to the proposed abandonment and dismantlement have been 
received by the Commission. A member of the Commission's staff visited 
Whitehurst and inquired of residents there regarding their attitude to the 
proposed action. There appeared to be no objection. 

Whitehurst is a non-agency station located on the applicant's line intermediate 
to Parmele and Greenville, four miles south of Parmele. 

During the twenty-four months' period, October, 1944, to September, 1946, 
inclusive, Applicant received no revenue from freight traffic forwarded, either 
carload or less carload, or from passenger train or miscellaneous services. 
Carload traffic received at Whitehurst during the same period afforded applicant 
$634, or an average of $26.40 a month. Less carload traffic received afforded 
$28.55, or an average of $2.29 a month. 

Upon consideration of the facts presented, the Commission has concluded 
that the public convenience and necessity does not require maintenance of 
the station facilities at Whitehurst, North Carolina. Accordingly, 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 

This 5th day of February, 1947. 

Cm^s. Z. Flack, Chief Clerk 
Docket No. 2512 



ABANDONMENT OF SIDE TRACKS 

APPLICATION FOR THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

ITS SIDE TRACK AT ALASKA, N. C. 

Order 

By application filed October 15, 1947 the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its side track at 
Alaska, N. C. 

Affidavit attached to the application indicates compliance with the ten-day's- 
notice requirement of Practice Rule 13. 

No expressions of protest against the proposed abandonment and dismantlement 
have been received by the Commission. An investigation by an employee 
of the Commission into the situation in the vicinity of Alaska did not 
reveal any substantial interest on the part of residents in retaining the 
facility under question. The siding is in need of repairs estimated to cost 
$817. Said track is 300 feet in length and is on Applicant's main line 
intermediate to Four Oaks and Benson, N. C. being five miles from 
the former and three miles from the latter. 



238 N. C. Utilities Commission 

There has been very Httle traffic handled on this siding during the last 
several years. Such as there was, consisted of one or two cars of pulpwood 
and one car of fertilizer per annum. 

Upon consideration of the facts presented the Commission has concluded 
that the public necessity and convenience do not require maintenance of 
this side track. Accordingly, 

It Is Ordered, That the application herein be and the same is hereby 
approved. 

By Order of the Commission. 
This 1st day of November, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON A COMPANY TRACK 

AT AYCOCK, NORTH CAROLINA. 

Order 

By application filed November 8, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon its company track at Aycock, North 
Carolina. Affidavit attached to said application indicates compliance with 
the ten-day's-notice requirement of Practice Rule 13. 

No expressions of opposition to the proposed abandonment have been 
made to the Commission. An investigation was made at the location of the 
track by an employee of the Commission and found no opposition on the 
part of residents in the vicinity. It appeared that the siding has not been 
used in seven or eight years. Said track is 305 feet in length. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the company track described above at Aycock, N. C. Accordingly; 

It Is Ordered, That the application herein be, and same is hereby, approved. 
By Order of the Commission. 
This 1st day of April, 1948. 

Chas. Z. Flack, Chiej Clerk 
Docket No. 4218 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT BARNHILL, NORTH CAROLINA. 

Order 

By application filed May 24, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Barnhill, 
N. C. Affidavit attached to said application indicates compliance with the 



Decisions and Adjustments of Complaints 239 

ten-day's notice requirement of Practice Rule 13. No opposition to the 
proposed abandonment and dismantlement has been expressed to the Commission. 
An investigation of the matter by an employee of the Commission revealed 
no opposition on the part of residents in the vicinity of Barnhill. 

Barnhill, a non-agency station is located 3 miles south of Whitehurst and 
3 miles north of Staton, on applicant's Pender to Kinston line. The sidetrack 
is yi7 feet in length and the approach to the track has been plowed up 
and a ditch dug across the field, making it impossible to handle materials 
from the track. There has been only one carload of fertilizer handled into 
this point during the past year and on account of the bad roads leading 
to the track, consignee was unable to move same and it was necessary to 
move the car to Staton, N. C. for unloading. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack above described at Barnhill, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 

This 2nd day of August, 1948. 

Docket No. 4218 



Chas. Z. Flack, Chie] Clerk 



APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

A SIDETRACK KNOWN AS BETHUNE'S SIDING, N. C 

Order 

By application filed November 25, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle a sidetrack known as 
Bethune's Siding, North Carolina. Affidavit attached to the application indicates 
compliance with the ten-day's-notice requirement of Practice Rule 13. 

Said track is 365 feet in length and is located on applicant's main line 
2.2 miles south of Parkton. It is in need of repairs estimated to cost 
$692.00. No opposition to the proposed abandonment and dismantlement has 
been expressed to the Commission. An investigation at the location by a 
Commission employee revealed that there was no opposition on the part 
of the residents in the vicinity of the siding. 

The only traffic being handled over said siding consists of two cars of 
fertilizer per annum. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of Bethune's Siding. Accordingly; 



240 N. C. Utilities Commission 

It Is Ordered, That the apphcation herein be, and the same is hereby, 
approved. 

By Order of the Commission. 

This 2nd day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 

FOR AUTHORITY TO ABANDON AND DISMANTLE A SIDETRACK 

AT BLOUNT, NORTH CAROLINA. 

Order 

By application filed December 4, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle the sidetrack at Blount, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. 

Blount is located on applicant's Parmele to Kinston line, being 1.6 miles 
south of Parmele. Said sidetrack is 317 feet in length and in need of repairs 
estimated to cost $1044. 

No opposition to the proposed abandonment and dismantlement has been 
expressed to the Commission. An investigation at the location of the sidetrack 
by an employee of the Commission revealed no opposition on the part of 
residents there. 

During the past year the only traffic handled over the sidetrack was 
a single car of fertilizer. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public necessity and convenience do not require future maintenance 
of the sidetrack described above at Blount, N. C. Accordingly; 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 

This 1st day of April, 1948. 

Charles Z. Flack, Chief Clerk 

Docket No. 4218 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT BRASWELL, NORTH CAROLINA. 

Order 

By application filed December 16, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Braswell, 
N. C. Affidavit attached to said application indicates compliance with the 



Decisions and Adjustments of Complaints 241 

ten-day's-notice requirement of Practice Rule 13. No opposition to the 
proposed abandonment and dismantlement has been expressed to the Commission. 
An investigation of the matter by an employee of the Commission revealed 
no opposition on the part of residents in the vicinity of Braswell, N. C. 

Braswell, a non-agency station is located between Evergreen and Chadbourn, 
N. C. a distance of 3.4 miles from Evergreen and 4.8 miles from Chadbourn 
on Applicant's Elrod to Myrtle Beach Line. The sidetrack is 343 feet 
in length and the road to and from it is in very bad condition. There 
has been no loading or unloading of cars at this point for several months. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack above described at Braswell, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 
This 11th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 



APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 
FOR AUTHORITY TO ABANDON AND REMOVE ITS SIDETRACK 

AT BRICK, N. C. 

Order 

By application filed September 27, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon its track of 244 feet in length at 
Brick, North Carolina. A notice of intention to proceed was posted at the 
station there on August 30, 1947. However, no protest was received and 
after a local investigation by a representative of the Commission, we feel 
disposed to approve the application, which approval, we think, is amply justified 
by the following circumstances. • 

A similar application was filed some months ago and upon an indication 
of new business developments that application was withdrawn without prejudice 
to the right of the applicant carrier to renew same, which said carrier 
has now done. The additional traffic has not materialized and based upon 
the interpretation of our authority by the courts in matters of this kind, 
we are of the opinion that in the interest of the general public, and under 
the law we may not require the carrier to maintain a facility of this 
kind which receives sub-marginal utility. 

According to the report of our representative who investigated this matter, 
there is now no real need for further maintaining the track, and in consideration 
pf all circumstances ; 



242 N. C. Utilities Commission 

It Is Ordered, That Atlantic Coast Line Railroad Company be, and the 
same is hereby, authorized to abandon and remove its sidetrack of 244 feet 
in length at Brick, N. C. 

By Order of the Commission. 

This 6th day of December, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3867 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT CANADY, NORTH CAROLINA. 

Order 

By application filed February 6, 1948, the Atlantic Coast Line Railroad 

Company seeks authority to abandon and dismantle its sidetrack at Canady, 

N. C. Affidavit attached to the application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. 

Canady is located on applicant's Parmele to Kinston line, intermediate 
to Grifton and Graingers, being 7.6 miles north of Kinston. The sidetrack 
is 350 feet in length. 

No opposition to the proposed abandonment and dismantlement has been 
expressed to the Commission. An investigation of the matter in the vicinity 
of Canady by an employee of the Commission revealed that there were no 
objections to the proposal on the part of the residents there; also that there 
has been no freight handled over said sidetrack for more than four years. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require continued maintenance 
of the sidetrack described above at Canady, N. C. Accordingly ; 

It Is Ordered. That the application herein be, and the same is hereby, 
approved. 

By Order of the Commission. 

This 1st day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 



APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON ITS SIDETRACK AT 

DELMAR, NORTH CAROLINA. 

Order 

By application filed May 30, 1947, the Atlantic Coast Line Railroad 
Company seeks authority to abandon its sidetrack at Delmar, North Carolina. 



Decisions and Adjustments of Complaints 243 

Affidavit attached to said application indicates compliance with the ten-day's- 
notice requirement of Practice Rule 13. 

The Commission has not received any protest against the proposed abandon- 
ment and investigation of the situation in the vicinity of Delmar revealed 
no present or probable future necessity that would justify maintenance of 
the facility. 

Delmar is a prepay point on applicant's main line intermediate to agency 
stations Halifax and Enfield, North Carolina, being 3.3 miles from the 
former and 5.7 miles from the latter. 

The sidetrack at Delmar is 320 feet long and in a very dilapidated condition. 
The only traffic handled over it for many years is fertilizer, a car of 
which is delivered on it only on very rare occasions. This traffic could be 
handled through the Halifax facilities with little or no inconvenience to the 
public. 

Upon consideration of the facts recited, the Commission has concluded that 
the public convenience and necessity do not require maintenance of this 
facility. Therefore, 

It Is Ordered, That the application herein be and the same is hereby 
approved. 

By Order of the Commission. 

This 19th day of June, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4029 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT LITTLEFIELD, NORTH CAROLINA. 

Order 

By application filed May 24, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Littlefield, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. No opposition to the proposed 
abandonment and dismantlement has been expressed to the Commission. An 
investigation of the matter by an employee of the Commission revealed 
no opposition on the part of residents in the vicinity of Littlefield. 

Littlefield, a non-agency station is located 3 miles south of Ayden and 4 
miles north of Grifton, on applicant's Pender to Kinston line. The sidetrack 
is badly in need of repairs estimated to cost $497.00. There has been only 
one carload of building material handled over the sidetrack here involved 
during a long period of time, which appears to have been a sporadic movement. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack above described at Littlefield, N. C. Therefore, 



244 N. C. Utilities Commission 

It Is Ordered, That the appHcation herein be, and the same is hereby 
approved. 

By Order of the Commission. 

This 2nd day of August, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 
FOR AUTHORITY TO ABANDON ITS SIDETRACK AT McNATTS, 

NORTH CAROLINA. 

Order 

By application filed November 1, 1947 the Atlantic Coast Line Railroad 
Company seeks authority to abandon its sidetrack at McNatts, North Carolina. 
Affidavit attached to application indicates compliance with the ten-day' s-notice 
requirement of Practice Rule 13. 

McNatts is located on applicant's Parkton to Sumter line intermediate to 
Parkton and Grahams, being 1.7 miles from Parkton. The sidetrack is 250 
feet long and is in need of repairs estimated to cost $787.00. 

No opposition to the proposed abandonment has been expressed to the 
Commission. An investigation of the situation was made in the vicinity of 
McNatts by an employee of the Commission and revealed no opposition on 
the part of the residents there. No traffic has been handled over this 
sidetrack for several years. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack at McNatts, N. C. Accordingly; 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 

This 1st day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 311 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT POTTS, NORTH CAROLINA. 

Order 

By application filed August 20, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Potts, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. No opposition to the proposed 
abandonment and dismantlement has been expressed to the Commission. An 



Decisions and Adjustments of Complaints 245 

investigation of the matter by an employee of the Commission revealed no 
opposition on the part " of residents in the vicinity of Potts, N. C. 

Potts, a non-agency station is located between agency stations Goldsboro 
and Mount Olive, N. C. on applicant's Contentnea to Wilmington line, a 
distance of 11 miles from Goldsboro and 2.1 miles from Mount Olive. The 
side track is 508 feet in length and is badly in need of repairs estimated to 
cost $858.00. There has been no loading or unloading of cars at this point 
for over four years. 

Upon considering the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack above described at Potts, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 

This 12th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE ITS 

SIDETRACK AT WILTS, NORTH CAROLINA. 

Order 

By application filed May 24, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Wilts, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. No opposition to the proposed 
abandonment and dismantlement has been expressed to the Commission. An 
investigation of the matter by an employee of the Commission revealed no 
opposition on the part of residents in the vicinity of Wilts. 

Wilts, a non-agency station is located 5 miles north of Jamesville and 2 
miles south of Hardison, on applicant's Tarboro to Plymouth line. The 
sidetrack is 432 feet in length and is badly in need of repairs estimated 
to cost $952.00. There has been only one carload of potatoes handled over the 
sidetrack here involved during a long period of time, and this was shipped 
there to be unloaded and destroyed, which appears to have been a sporadic 
movement. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of the sidetrack at Wilts, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 

This 2nd day of August, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4218 



246 N. C. Utilities Commission 

PETITION OF CLINCHFIELD RAILROAD COMPANY FOR 
AUTHORITY TO REMOVE THE SIDE TRACK AT WING SIDING, 

NORTH CAROLINA. 

Order 

Petition filed November 5, 1947, Clinchfield Railroad Company seeks authority 
to remove the sidetrack at Wing Siding, North Carolina, which station is 
of the non-agency kind. Only three carloads of freight were handled on 
the track during the year which closed with July 31, 1947. These three 
cars yielded relatively low earnings. Wing Siding is located between nearby 
stations on either side at which sidetrack facilities are available. Notice of 
intention to proceed toward removal of the track was posted in a conspicuous 
place at Wing Siding on October 17, 1947 and remained there for a period 
of ten days or more. Apparently there is no realistic interest in the matter 
for the reason, that as of this date no protest has been received from any 
source whatsoever. Upon considering all the circumstances : 

It Is Ordered, That the petition herein of the Clinchfield Railroad Company 
to remove its sidetrack at Wing Siding, North Carolina be and the same 
is hereby approved. 

By Order of the Commission. 

This 10th day of December, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4229 



ELIMINATION OF FLAG STOPS AND DISCONTINUANCE 

OF TRAINS. 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ELIMINATE BRAKE, NORTH 

CAROLINA AS A FLAG STOP FOR TRAINS 48 AND 49. 

Order 

By application filed August 23, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to discontinue flag stops for Trains 48 and 49 at 
Brake, N. C. Affidavit attached to said application indicates compliance with 
the ten-day's-notice requirement of Practice Rule 13. There was no opposition 
to the proposal expressed to the Commission. An investigation of the matter 
by a member of the staff of the Commission revealed no opposition on the 
part of residents in the vicinity of Brake. 

Brake is a non-agency station located between South Rocky Mount and 

Tarboro, N. C. on applicant's South Rocky Mount to Pinners Point, line, 

a distance of 4.3 miles from South Rocky Mount and 10.6 miles from 
Tarboro. 

Statement showing the number of passengers handled on cash fares and 
applicant's revenue accruing therefrom, on trains 48 and 49 from and to 



Decisions and Adjustments of Complaints 247 

Brake for six months period ending June 30, 1947, as compared with the 
same period of 1948. reveals a monthly average of 17 passengers, revenue 
$3.56 during 1947, and 12 passengers, revenue $1.54 for corresponding period 
of 1948. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require the stopping of 
trains 48 and 49 at this point. Therefore, 

It Is Ordered, That the application herein be. and same is hereby approved. 

By Order of the Commission. 

This 27th day of September, 1948. 

Chas. Z. Flack, Chief Cierk 
Docket No. "4475 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 
COMPANY FOR AUTHORITY TO CHANGE ELM CITY, N. C. FROM 
A REGULAR STOP TO A FLAG STOP FOR PASSENGER TRAIN 

NO. 42. 

Order 

By application, filed December 27, 1946, Atlantic Coast Line Railroad 
Company seeks authority to discontinue Elm City, N. C, as a regular 
stop for its passenger train No. 42, and to substitute flag stop service in 
lieu thereof. 

Notice, in compliance with Practice Rule 13, announcing the intention to 
make the application herein, remained posted on the station at Elm City 
for a period of ten days, beginning with December 3, 1946. Affidavit attesting 
to this fact was attached to the application. 

A member of the Commission's staff visited Elm City and inquired relative 
to the convenience and necessity of the residents there regarding the proposed 
change. There appeared to be no opposition. 

A statement attached to the application shows that, during the period 

October 19th to November 4th, 1946, inclusive, 27 passengers arrived at 

Elm City on train No. 42 ; and that during the same period 2 passengers 
departed on said train. 

In view of the fact that the service will be conveniently available to 
these or other passengers if the proposed change is made ; and the further 
fact that the operation of train No. 42 may be expedited and rendered 
less expensive to operate to the extent that it is not required to stop, 
except conditionally, the Commission is of the opinion that the application 
should be approved. Accordingly; 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 

This 31st day of January, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3863 



248 N. C. Utilities Commission 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ELIMINATE HEARTSEASE, N. C 

AS A FLAG STOP FOR TRAINS 48 AND 49. 

Order 

By application filed August 23, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to discontinue flag stops for trains 48 and 49 
at Heartsease, N. C. Affidavit attached to said application indicates compliance 
with the ten-day's-notice requirement of Practice Rule 13. There was no 
opposition to the proposal expressed to the Commission. An investigation of 
the matter by a member of the stafif of the Commission revealed no opposition 
on the part of residents in the vicinity of Heartsease. 

Heartsease is a non-agency station located between South Rocky Mount 
and Tarboro, N. C. on applicant's South Rocky Mount to Pinners Point 
line, a distance of 9.7 miles from South Rocky Mount and 5.2 miles from 
Tarboro. 

Statement showing the number of passengers handled on cash fares and 
applicant's revenue accruing therefrom on trains 48 and 49 from and to 
Heartsease for six month period January through June 1947 as compared 
with the same period of 1948 reveals a monthly average of 6 passengers, 
revenue $1.06 during 1947 and 2 passengers, revenue $ .12 for corresponding 
period of 1948. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require the stopping of 
trains 48 and 49 at Heartsease. Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 

This 27th day of September, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4475 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY, FOR AUTHORITY TO ELIMINATE KINGSBORO, NORTH 

CAROLINA AS A FLAG STOP FOR TRAINS 43 AND 44. 

Order 

By application 24.61 -N-26, filed August 2, 1948, the Atlantic Coast Line 
Railroad Company seeks authority to discontinue flag stops for trains 43 
and 44 at Kingsboro, North Carolina. Affidavit attached to the application 
indicates compliance with the ten-day's-notice provisions of Practice Rule 13. 

There was no opposition to the proposal expressed to the Commission. 
An investigation by a member of the staff of the Commission revealed that 
there was no opposition on the part of residents in this vicinity. 



Decisions and Adjustments of Complaints 249 

Kingsboro is a non-agency station located between South Rocky Mount 

and Tarboro, N. C. on applicant's South Rocky Mount to Pinners Point 

line, being a distance of 7.5 miles from South Rocky Mount and 7.4 miles 
from Tarboro. 

Statement showing the number of passengers handled on cash fares and 
applicant's revenue accruing therefrom, on trains 43 and 44 from and to 
Kingsboro during the period of January through June 1947 and 1948 to 
be none, was submitted with the application. 

Upon consideration of these matters the Commission has concluded that 
the public convenience and necessity do not require the stopping of trains 
43 and 44 at this point, Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 

This 14th day of August, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4475 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ELIMINATE NORFLEET, NORTH 

CAROLINA AS A FLAG STOP FOR TRAINS 43 AND 44. 

Order 
By application filed August 1, 1948, the Atlantic Coast Line Railroad 
Company seeks authority to discontinue flag stops for trains 43 and 44 at 
Norfleet, N. C. Affidavit attached to said application indicates compliance 
with the ten-day's-notice requirement of Practice Rule 13. There was no 
opposition to the proposal expressed to the Commission. An investigation 
of the matter by a staff member of the Commission revealed no opposition 
on the part of residents in the vicinity of Norfleet. 

Norfleet is a non-agency station located between Palmyra and Kelford, 
N. C. on applicant's South Rocky Mount to Pinners Point Line, a distance 
of 5.5 miles from Palmyra and 4.9 miles from Kelford. 

Statement showing the number of passengers handled on cash fares and 
applicant's revenue accruing therefrom, on trains 43 and 44 from and to 
Norfleet for six months period ending June 30, 1947 as compared with the 
same period of 1948 reveals a monthly average of ten passengers, revenue 
$5.40 during 1947 and 10 passengers, revenue $5.35 for corresponding period 
of 1948. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require the stopping of 
trains 43 and 44 at this point. Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 
By Order of the Commission. 
This 6th day of December, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4474 



250 N. C, Utilities Commission 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO ELIMINATE PALMYRA, NORTH 

CAROLINA AS A FLAG STOP FOR TRAIN NUMBER 43. 

Order 

By application filed October 11, 1948 and amended on November 10, 1948 
the Atlantic Coast Line Railroad Company seeks authority to discontinue 
flag stops for train number 43 at Palmyra, N. C. Affidavit attached to said 
application indicates compliance with the ten-day's-notice requirement of Practice 
Rule 13. 

Under date of September 21, 1948, Mr. B. B. Everett and Mr. James R. 
Stevenson, for and on behalf of the citizens of Palmyra, filed the only 
protest of record in this matter. However, after conference with Mr. A. R. 
Brinkley representing the applicant, they agreed to withdraw their protest 
to elimination of flag stop for train number 43, provided that rack is 
furnished for the dispatching and receiving of mail. 

Palmyra is located between agency stations Hobgood and Kelford on 
applicant's South Rocky Mount to Pinners Point Line, a distance of 4.2 
miles from Hobgood and 10.4 miles from Kelford. 

Statement showing the number of passengers handled on cash fares and 
applicant's revenue accruing therefrom, on train number 43 from and to 
Palmyra for a six months period ending June 30, 1947 as compared with 
the same period of 1948 reveals a monthly average of 4 passengers, revenue 
$1.56 during 1947 and 4 passengers, revenue 95 cents for corresponding 
period of 1948. 

Upon consideration of the foregoing matters the commission has concluded 
that the public convenience and necessity do not require the stopping of 
train number 43 at this point. Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved 
subject to the foregoing condition. 

By Order of the Commission. 
This 4th day of December, 1948. 

Chas. Z, Flack, Chiej Clerk 
Docket No. 4475 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE TRAINS NOS. 

48 AND 49 BETWEEN WILMINGTON. NORTH CAROLINA, AND 

THE NORTH CAROLINA-VIRGINIA STATE LINE. 

Order 

APPEARANCES: 

For the Applicant : 

Murray Allen, Raleigh, North Carolina 
F R. Langley, Savannah, Georgia 



Decisions and Adjustments of Complaints 251 

For the Protestants : 

Ehringhaus & Ehringhaus, Raleigh, North Carohna, for Order 
of Railway Conductors, Brotherhood of Locomotive Engi- 
neers, Brotherhood of Locomotive Firemen and Engineers, 
and Brotherhood of Railway Trainmen. 

J. M. Broughton, Raleigh, North Carolina, for Citizens 
Committee of Fremont 

J. B. Burden, Ahoskie, North Carolina, for Citizens of Ahoskie 

H. L. Keller, Plant City, Florida, for The Order of Railroad 
Telegraphers 

Rivers D. Johnson, Warsaw, North Carolina, for Town of 
Magnolia and Citizens of Duplin County 

John E. Baumberger, Asheville, North Carolina, for North 
Carolina Legislative Board of the Brotherhood of Loco- 
motive Firemen and Enginemen 

Fred P. Parker, Jr., Goldsboro, North Carolina, for Wayne 
County 

W. Frank Taylor, Goldsboro, North Carolina, for Town of 
Mount Olive, Civic Organizations, and Chamber of Com- 
merce of Mount Olive 

Major M. Hillard, Portsmouth, Virginia, for the City of 
Portsmouth 

Scott B. Berkeley, Goldsboro, North Carolina, for the City of 
Goldsboro 

Eugene Roberts, Pikeville, North Carolina, for the Town of 
Pikeville 

J. W. Turner, Portsmouth, Virginia, for the Brotherhood of 
Locomotive Engineers 

WiNBORNE, Chairman 

This Case came on for hearing before the Commission, all members being 
present, and was heard in two sections. The first hearing was on August 
20, 1947, and the second hearing on October 15, 1947. Notice of the hearing 
was published as required by law. 

The applicant, Atlantic Coast Line Railroad Company, asked that it be 
given authority to discontinue trains Nos. 48 and 49 running between Wilming- 
ton, North Carolina and the North Carolina- Virginia State Line. From the 
latter point said trains were operated within the State of Virginia to and 
from Portsmonth. Subsequent to the fiirst hearing on August 20, a like 
application was heard by the Corporation Commission of Virginia asking that 
the applicant be allowed to discontinue said two trains from the North 
Carolina- Virginia State Line to and from Portsmouth, Virginia. The Corporation 
Commission of Virginia denied the application, whereupon prior to the 



252 N. C. Utilities Commission 

hearing before this Commission on October 15, 1947, the applicant gave 
notice that it would withdraw that part of its application asking for a 
discontinuance of trains 48 and 49 from Rocky Mount to the North Carolina- 
Virginia State Line, and only insist upon being given authority to discontinue 
said trains 48 and 49 between Rocky Mount and Wilmington. 

At the first hearing considerable testimony was adduced and many exhibits 
offered by the applicant tending to show that the applicant was sustaining 
a considerable financial loss in the operation of said trains. At the second 
hearing evidence was offered by the applicant tending to show that the 
applicant was losing a considerable amount daily in the operation of trains 
48 and 49 between Rocky Mount and Wilmington, and also tending to show 
that there were more schedules between said points than public need and 
necessity required. Witnesses for the applicant testified that the applicant 
was now operating between Rocky Mount and Wilmington three round trip 
passenger trains each day, whereas prior to the war there never had been 
more than two round trip passenger trains operated for the last 20 odd 
years between said points and that there never had been, except during the 
war, and is not now, need for more than two round trip passenger trains 
between said points. Passenger trains 45 and 46 which began operating 
during the war to serve army camps do not now, and never have, operated 
north of Rocky Mount on the Rocky Mount-Norfolk division. These trains 
45 and 46 were put on at the request of the Commission with the understanding 
that when the war emergency was over they could be discontinued without 
any hearing before the Commission, but the applicant contends that they 
suit the needs of the public better than 48 and 49 and that if they are 
allowed to discontinue the operation of trains 48 and 49 they would continue 
to operate trains 45 and 46 permanently so long as the Commission required 
them to do so, thereby waiving the agreement entered into with the Commission 
that said trains 45 and 46 could be taken oflf at the end of the war 
emergency. Trains 48 and 49 serve all stations between Rocky Mount and 
Wilmington except a few flag stations. Trains 45 and 46 do not serve all 
stations between Rocky Mount and Wilmington and the stations not served 
are not flag stations. Therefore if trains 48 and 49 are discontinued there 
will be some stations between Rocky Mount and Wilmington without any 
passenger, express and mail service by train at all, except late at night. 
Mail and express service to the points not served by 45 and 46 the applicant 
promised to serve by truck if permission were granted to discontinue trains 
48 and 49. 

The passenger trains now operating between Wilmington and Rocky Mount 
operate on the following schedules: Train 42 leaves Wilmington at 7:30 
P. M. arriving in Rocky Mount at 12:30 A. M. ; train 46 leaves Wilmington 
at 4 P. M. arriving at Rocky Mount at 7:20 P. M. ; train 48 leaves 
Wilmington at 10:00 A. M. arriving in Rocky Mount at 2:40 P. M., and 
train 49 leaves Rocky Mount at 1:10 P. M. arriving in Wilmington at 6:30 
P. M. From these schedules it is obvious that if trains 48 and 49 are 
discontinued the only trains left serving all stations would be 41 and 42, 
and they pass stations intermediate between Wilmington and Rocky Mount 
in the night time when the stations are closed and the agents have left. 



Decisions and Adjustments of Complaints 253 

If this Commission were to allow trains 48 and 49 to be discontinued upon 
the condition that trains 45 and 46 serve all the stations now served by 
48 and 49, the very purpose for which trains 45 and 46 are operated would 
be defeated for the reason that the schedules would be too slow to make 
the connections in Rocky Mount. The Commission is fully satisfied that 
three round trip passenger trains per day between Wilmington and Rocky 
Mount are more than the public needs require. 

It appears to the Commission, and this conclusion has not been hastily 
reached, that the only possible solution of the matter with any reasonable 
regard for the public convenience and necessity is: (1) To refuse to allow 
the discontinuance of trains 48 and 49; (2) to permit the discontinuance 
of trains 45 and 46 as per the agreement when they were first put on, and 
(3) to allow the schedules of 41 and 42 to be changed if said change is 
found to be desirable. 

Wherefore It Is Ordered: 

1. That the instant application be and the same is hereby denied. 

2. That the applicant be allowed to discontinue trains 45 and 46 
upon ten days notice published in the Wilmington and the Rocky Mount 
newspapers. '^ 

3. That the applicant, if it so desires, submit to this Commission 
any proposed changes in the schedules of trains 41 and 42. 

This the 15th day of December, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4027 

APPLICATION OF ATLANTIC COAST LINE RAILROAD COMPANY 
FOR AUTHORITY TO DISCONTINUE TRAIN NOS. 48 AND 49 FROM 
WILMINGTON, N. C. TO THE NORTH CAROLINA-VIRGINIA STATE 

LINE. 

Order Overruling Exceptions 

This cause now comes before the Commission upon Exceptions filed by 

Atlantic Coast Line Railroad Company, petitioner, to the conclusions and 

Order made by the Commission in the above entitled matter dated December 

15, 1947. *^T 

Upon consideration of said Exceptions, and each of them, the same are 
hereby denied and dismissed. 

BY ORDER OF THE NORTH CAROLINA UTILITIES COMMISSION. 

This the 13th day of January, 1948. 

Stanley Winborne, Chairman 
ATTEST : 

Chas. Z. Flack. Chief Clerk 
Docket No. 4027 



254 N. C. Utilities Commission 

APPLICATION OF THE ATLANTIC COAST LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE PASSENGER 

SERVICE ON MIXED TRAINS NUMBERS 420 AND 421, BETWEEN 

WASHINGTON AND VANDEMERE, N. C 

Order 

By application filed December 7, 1948, Atlantic Coast Line Railroad 
Company seeks authority to discontinue passenger service on its mixed 
trains numbers 420 and 421, which operate between Washington and Vandemere, 
N. C. Affidavit attached to the application indicates compliance with the ten- 
day's-notice requirement of Practice Rule 13. Two citizens of Aurora, and 
one citizen each of Royal and Vandemere, stated to the Commission that 
they would not object to the proposed discontinuance. No expressions of 
objection were received from anyone, nor did an investigation by a member 
of the Commission's staff in the vicinity of the towns served by trains 
420 and 421 reveal any objection on the part of the local citizens. 

Said trains operate a distance of 41 miles between Washington and Vandemere, 
the principal other community served being Aurora. 

During the seven months period, April to October, inclusive, of 1947, 
65 passengers or an average of 9 per month were handled on train No, 420 
and 29 passengers or an average of 4 per month were handled on train No. 
421. The aggregate passenger revenues received by applicant during the same 
period were $14.70 from train 420 and $7.56 from train 421, representing 
an average per month of $2.10 and $1.08, respectively. There were substantial 
declines even in these meager revenue and traffic figures during the correspond- 
ing period of 1948. The number of passengers handled were 46 and 17, the 
total revenues-$15.60 and $5.74, average passengers per month-7 and 2, and 
average revenue per month $2.23 and $ .82, from the operations of passenger 
service in trains 420 and 421 respectively. 

Upon consideration of these matters the Commission has concluded that 
the pubHc convenience and necessity do not require that passenger service 
be afforded on trains 420 and 421 between Washington and Vandemere. 
Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 
This 20th day of December, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4593 

APPLICATION OF A. T. LEARY FOR APPROVAL OF LEASE OF 

THE RAILROAD PROPERTIES OF THE BEAUFORT & MOREHEAD 

RAILROAD COMPANY. 

Order 

On March 19, 1947, A. T. Leary filed application with the Interstate 
Commerce Commission for authority to lease the railroad properties of the 
Beaufort & Morchead Railroad Company. The matter was considered by 
that Commission and said application was approved under conditions set forth 



Decisions and Adjustments of Complaints 255 

in its report and order in Finance Docket No. 15652 decided May 7, 1947. 

Lessee A. T. Leary now seeks approval of the Utilities Commission of the 

lease and under the same conditions as approved by the Interstate Commerce 
Commission. 

Upon consideration of the matters involved the North Carolina Utilities 
Commission has concluded that operation of the Beaufort & Morehead 
Railroad Company properties by A. T. Leary under the terms and conditions 
of the lease, as approved by the Interstate Commerce Commission is in the 
public interest. Accordingly, 

It Is Ordered, That said lease be and the same is hereby approved. 

By Order of the Commission. 
This 14th day of November, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3953 

APPLICATION OF THE BEAUFORT AND MOREHEAD RAILROAD 
COMPANY FOR AUTHORITY TO DISCONTINUE PASSENGER 

SERVICE. 

Order 

By application filed April 2, 1948, the Beaufort and Aiorehead Railroad 
Company seeks authority to discontinue passenger service. 

Applicant operates one train in each direction daily between Morehead 
City and Beaufort, a distance of three miles. The aggregate revenue received 
from this operation for the two calendar years, 1946 and 1947 was $966.30, 
being composed of $6.30 passenger revenue, and $960.00 mail revenue, the 
latter is lost to this carrier for the future due to the fact that beginning 
with April 1, 1948 the United States Postoffice Department began using 
highway service between Morehead City and Beaufort in lieu of the service 
over applicant's railroad. 

Applicant proposes to handle express in its pick-up and delivery truck 
in the event the application herein is approved. 

Upon consideration of the above matter the Commission has concluded 
that the public convenience and necessity do not require future operation of 
passenger service by the Beaufort and Morehead Railroad Company. Therefore ; 

It Is Ordered, That the application herein be^ and same is hereby, approved. 

By Order of the Commission. 
This 28th day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4386 



256 N. C. Utilities Commission 

APPLICATION OF THE CAROLINA AND NORTHWESTERN 

RAILWAY COMPANY, FOR AUTHORITY TO DISCONTINUE 

PASSENGER SERVICE BETWEEN THE NORTH CAROLINA-SOUTH 

CAROLINA STATE LINE, JUST SOUTH OF CROWDERS, NORTH 

CAROLINA, AND LENOIR, NORTH CAROLINA. 

Order 
Appearances : 

Charles Clark, Washington, D. C, W. T. Joyner, and H. E. Powers, of 
Raleigh, N. C, and J. R. Sewell, Charlotte, N. C, for applicant. 

W. H. Strickland, and Max Wilson, Lenoir, N. C, for protestants. 

By application filed September 10, 1946, the Carolina and Northwestern 
Railway Company seeks authority to discontinue passenger service over 
the full length of that portion of its line lying in North Carolina, viz: 
between the North Carolina- South Carolina State Line just south of Crowders, 
North Carolina and Lenoir, North Carolina. Affidavit attached to the application 
bearing the attestation to the fact that, as required by Practice Rule 13, 
notice announcing intention to file the application remained posted at each 
station for a period of ten days beginning with August 24, 1946. 

Several protests against the proposed discontinuance were received by 
the Commission, and upon consideration of these, the matter was set and 
came on for hearing on January 31, 1947, in the Commission's Court Room 
at Raleigh. There were no appearances entered for protestants. Despite 
the fact that ample and proper notice of the hearing had been extended 
to all known parties of interest, the Commission, in order to gain any 
information which might otherwise be unavailable to it, again set the matter 
for the purpose of hearing protestants. Applicant stated that it did not 
object to such action. Said further hearing was held in the Commission's 
Court Room at Raleigh on March 17, 1947, with appearances as shown above. 

The passenger service, here sought to be discontinued, is being afforded 
by one train daily, except Sunday, in each direction, over the approximately 
71 miles of line lying in the State. These trains. Numbers 1 and 2, handle 
passengers, baggage and express, but do not handle mail. Applicant has 
entered into an agreement with bus lines operating over the highways 
which parallel its line, under which said bus lines accept applicant's ticket 
coupons for travel between points on its line. This arrangement will be 
continued if this application is approved, and the management of the bus 
lines have further agreed to afford improved service, in that event. The 
Railway Express Agency, at present, furnishes service at points between 
Hickory and Lenoir, inclusive, by motor vehicle, and at points between Hickory 
and Newton, inclusive, by Southern Railway. On January 31, 1947, the 
Railway Express Agency filed an application with the Commission for authority 
to serve all points south of Newton by Motor Vehicle. Said application 
was heard under Docket No. 3889 and approved by Order dated April 9, 
1947. Accordingly, the Railway Express Agency service at points on applicant's 



Decisions and Adjustments of Complaints 257 

line is not dependent upon the passenger trains here under consideration. 

There will be no men left out of work if these passenger trains are 
discontinued. Applicant's force of freight service trainmen is in short supply. 

Applicant's Exhibit No. 2 shows the passenger train revenues, expenses 
and certain statistics assignable to its operation in North Carolina during 
the calendar years 1940 to 1945, inclusive, and for the first six months of 
1946. Passenger service operating ratios for the six and a half years shown, 
computed from total passenger train revenues and expenses, range from 
121 during 1944, to 295 during six months of 1946, and average 142 for 
the entire period. Differently stated: It has cost applicant an average of $1.42 
to produce a dollar of passenger service revenues during said period. Contri- 
buting to these unfavorable results were average low train occupancy (passenger- 
miles per train-mile) and relatively short average journey (miles) per 
passenger. The average number of passengers per train, computed from 
the statistics shown on Exhibit 2, range from 4.4 during the first six months 
of 1946 to 12.0 during 1944, with the average for the entire period being 8.1. 
The average length of journey per passenger ranged from 17.5 miles during 
1943 to 21.3 miles during 1945. For the entire period it was 19.1 miles. The 
passenger service operating deficits for the five full years shown in applicant's 
Exhibit No. 2 range from $6,405 in 1944 to $12,317 in 1941. For the 
116 days of operation during 1945 the deficit shown is $2,739. This figure 
expanded prorata to an annual basis would amount to $8,615. For 149 
days of operation in 1946, the deficit shown is $10,435. This figure expanded 
prorata to an annual basis would amount to $25,550. 

The data contained in Exhibit No. 2 shows conclusively that the passenger 
service in question, during the period beginning with January 1, 1940, and 
ending with June 30, 1946, failed by a wide margin to produce sufficient 
revenue to meet the passenger operating expenses. There appears to be no 
prospect of improvement of these conditions in the future. To the extent 
that said passenger service has failed to produce sufficient revenue to meet 
the expenses of operation, it has been a burden upon freight traffic. Applicant 
offered no separate figures related solely to its freight operation, but Exhibit 
No. 5 shows its income account for the combined freight and passenger 
operation during the period January 1, 1940 to June 30, 1946. The combined 
operating ratios computed from the data shown, range from 61.0 in 1941 
to 87.2 in 1944, with an average for the entire period of 71.8. The 
average annual deficit in net income during said period, sustained by applicant 
in its over-all operation was $19,600. As of December 31, 1945, the deferred 
unpaid interest on bonds was around $875,000. 

Applicant's Exhibit No. 10 shows the number of passengers handled and 
passenger-miles of service performed annually from 1916 to 1944, inclusive, 
for part of 1945 and for the first six months of 1946. The greatest 
volume of passenger traffic was handled in 1920 when 211,683 passengers 
traveled via Carolina and Northwestern Railway. Thereafter there was a 
considerable decline with occassional slight recoveries. However, the average 
number of passengers handled annually during the twenty years 1925 to 
1944, inclusive, was only 38,578, or 18.2% of the 1920 figure. 



258 N. C. Utilities Commission 

During 1946, applicant, along with other railroads in the country paid 
its labor two increases, totalling 18->2 cents per hour which aggregated 
a $112,000 increase over the corresponding 1945 pay. 

If the passenger service, with its attendant operating expense burden, 
is allowed to be discontinued, applicant will be enabled to immediately improve 
its freight schedules and service, and it is highly probable that it will, in 
the near future, be enabled to make long needed improvements in its 
roadway, particularly the bridges, and to purchase diesel locomotives, which, 
tests have shown, will result in more expeditious and efficient operation. 
Diesel equipment will permit a revision of shop facilities which will afford 
substantial economies. 

Evidence submitted by applicant shows that divisions of freight revenue 
between it and the Southern Railway are very favorable to applicant. 
These divisions were revised in 1944 to an extent which, tests indicate, 
resulted in additional freight revenue of $8,000 a month, which is equivalent 
to $96,000 per year. 

Protestants introduced testimony and exhibits purporting to show that 
applicant deliberately afforded poor station and train accomodations in order 
to discourage patronage, thereby causing operating losses, which could be used 
to secure authority to discontinue the service. There are no facts of record 
to support such a contention. To the contrary, it appears that the substantial 
operating losses sustained each year for many years have served as a 
deterrent to any efforts toward additions to or betterments in passenger 
facilities. 

Upon consideration of the facts of record, we find: 

1 That the public convenience and necessity will be affected only 
to a negligible extent if applicant's passenger train service is 
discontinued. This finding is made in the light of the facts that 
adequate, perhaps superior, motor carrier service will be available 
in lieu of the train service to handle passengers and their baggage; 
also express ; and that motor vehicle carriers of passengers have 
agreed to accept ticket coupons now being accepted by applicant 
from interline passengers travelling by railroad. 

2. That the very substantial losses, occasioned by operating passenger 
service, being sustained by applicant, constitute an undue burden 
upon its freight service, which should be removed in the interest 
of improved and , more efficient freight service. 

Accordingly, 

It Is Ordered, That the application herein be, and same is hereby, approved, 
effective at mid-night, Saturday, April 12, 1947. 

By Order of the Commission. 
This 9th day of April, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3762 



Decisions and Adjustments of Complaints 259 

BOUNDARY OF NORFOLK SOUTHERN RAILWAY COMPANY 
SWITCHING LIMITS AT ABERDEEN, NORTH CAROLINA 

Vacating Order 

It Appearing, That by order dated October 24, 1946, in the above entitled 
proceeding, respondent Norfolk Southern Railway Company, was notified to 
appear before the Commission at the time and place, therein designated, 
but later indefinitely postponed, and to show cause why an order should 
not be issued requiring said respondent, to extend its switching limits at 
Aberdeen, North Carolina to include therein the site and projected plant 
of the Robbins Cloth Mills as more specifically described in the aforementioned 
order ; 

It Further Appearing, That respondent has voluntarily extended its switch- 
ing limits at Aberdeen to include the site and plant of the Robbins Cloth 
Mills, by tariff duly filed with the Commission designated as supplement 
No. 38 to N. C. U. C. No. 107, which became effective October 20, 1947, And 

It Further Appearing, That there is now no good reason for respondent 
to appear and show cause. Therefore, 

It Is Ordered, That the order herein dated October 24, 1947 be, and 
same is hereby vacated and set aside, and that that proceeding be and same 
is hereby discontinued. 

By Order of the Commission. 
This 18th day of November, 1947. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3807 

DISCONTINUANCE OF PICK-UP AND DELIVERY SERVICE AT 
BELHAVEN, NORTH CAROLINA BY THE NORFOLK SOUTHERN 
RAILWAY COMPANY. 

Order 

Appearance : 

C. H, Ware, for Respondent Carrier. 

By order of October 13, 1947, the Commission entered upon a hearing 
into the lawfulness of respondent's tariff schedule containing proposed discon- 
tinuance of pick-up and delivery service at Belhaven, N. C. and suspended 
said schedule until January 9, 1948 or until April 8, 1948 if this proceeding 
was not concluded and final order made prior to the former date. For the 
convenience of respondent the hearing was deferred from a date selected 
in January 1948 until March 3, 1948, in consideration of which respondent 
agreed to waiver of the 180-day's-limitation contained in G. S. 62-125. 
Hearing was held as scheduled on March 3, 1948 at the Pitt County 
Courthouse in Greenville, with the appearance indicated above. No one appeared 
for protestants. 



260 N. C. Utilities Commission 

Pick-up and delivery service is defined in respondent's tariff substantially 
as covering transportation of freight between its freight depot and the location, 
platform or doorway of consignors or consignees, directly accessible to 
trucks or drays at street level. It is performed, under specified conditions 
without charge, usually within the corporate limits of a town or within 
a radius of a mile of the depot in unincorporated places ; in connection with 
the transportation of freight moving on less than carload or any quantity rates 
or ratings. 

Pick-up and delivery service was inaugurated at Belhaven and many other 
points on respondents line in 1936 for the purpose of affording service 
competitive with that performed by motor freight carriers, with the expectation 
that an increase in traffic and revenues would result and thereby justify 
the service. It appears that the added revenues failed to materialize, and in 
order to reduce the costs of handling this character of traffic, respondent 
discontinued the service at 26 of its local stations in North Carolina other 
than Belhaven during 1947. Competition with other rail lines compels respondent 
to maintain pick-up and delivery at common points. 

Six of the 27 receivers of freight at Belhaven who advised the Commission 
that they were opposed to discontinuance of the service availed themselves 
of it during the month of January 1948. An aggregate of 21,357 pounds 
of freight was delivered to the six parties at a direct cost of $22.45 or an 
average of 10.55 cents per 100 pounds to respondent. During the month of 
December 1947 nine of the 27 availed themselves of the Service and received 
an aggregate of 18,781 pounds which cost respondent directly $19.46 or an 
average of 10.36 cents per 100 pounds. 

Respondent tendered in evidence an exhibit containing a list of 199 railroad 
stations in the states of Alabama, Florida, Georgia, Kentucky, Mississippi, 
North Carolina (does not include respondent's 26 stations mentioned above), 
South Carolina, Tennessee, and Virginia, at which pick-up and delivery service 
has been discontinued. 

Pick-up and delivery is an accessorial terminal service in connection with 
rail transportation. It is not a railroad, nor a line of railroad, nor an 
extension of a line of railroad. (See decision of United States Circuit Court 
of Appeals For the Third Circuit in Nezv York Dock Ry. v. Pennsylvania 
R. Co. 62 Fed. (2d) 1010, decided 1933, U. S. Supreme Court refused to 
review 289 U. S. 750). In Pick-up and Delivery in Official Territory Investi- 
gation and Suspension Docket No. 4191, 218 ICC 441, the Interstate Commerce 
Commission said, at p. 470: 

"Because of their physical limitations carriers by 
water and by rail have been held to be under no 
legal obligation to deliver freight beyond their docks 
and stations, but in some instances such carriers avail 
themselves of their recognized right to so extend 
their service, usually under competitive compulsion." 

The view thus expressed appears rational and sound and considered in 



Decisions and Adjustments of Complaints 261 

relation to the other circumstances here present, we find the suspended 
schedule has been justified. Therefore, 

It Is Ordered, That the order herein dated October 13, 1947 be and 
same is hereby vocated and set aside and this proceeding be and same is 
hereby, discontinued. 

By Order of the Commission. 
This 19th day of April, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. R. S. 644 

APPLICATION OF THE MOORE CENTRAL RAILROAD COMPANY 

FOR AUTHORITY TO DISCONTINUE PICK-UP AND DELIVERY 

SERVICE AT CARTHAGE, NORTH CAROLINA. 

Order 

Appearances ; 

Van B. Sharpe. for applicant. 

E. J, Burns, for City of Carthage, Protestants. 

This matter comes before the Commission on an application of the Moore 
Central Railroad Company' for authority to discontinue pick-up and delivery 
service at Carthage. N. C. Upon protests received from shippers and receivers 
of freight at Carthage, it was docketed and came on to be heard on 
August 28, 1946, with appearances noted above. 

Mr. Van B. Sharpe represented that applicant was operating at a loss, 
that the service here under consideration was contributing to said loss, and 
that the discontinuance was being sought in order to minimize the deficit 
resulting from its operation. These representations are supported by the facts 
that the Annual Report of applicant for the calendar year 1945, on file 
with the Commission, shows net revenue from operations to be a deficit 
of $9,989.42. Said report also shows a debit balance of $3,417.35 for freight 
car hire which added to the $9,989.42 deficit results in a deficit of $12,406.77 
in net railway operating income. Since there were no other income, charges 
to income, or fixed charges, the latter figure was also the deficit after 
fixed charges. 

A statement submitted by applicant shows the cumulative operating deficit 
during 1945, and from January 1, through August 26, 1946, to be $20,870.30. 

A group of substantial business men present at the hearing, and represented 
generally by the Honorable E. J. Burns, Mayor of Carthage, took the 
position that applicant has failed to maintain the way and equipment of 
its line, and as a result, has been unable to furnish reliable service. They 
appear to believe that pick-up and delivery service is uniformly required 
by law or rules of regulatory bodies, such as this Commission, or the 
Interstate Commerce Commission, at all railroad agency stations. However, 
such is not the case. There are many railroad agency stations serving 



262 N. C. Utilities Commission 

communities comparable in size lo Carthage, at which no pick-up and 
dehvery service is afforded. Nor is the failure to provide the service 
at these stations in contravention of any general rule or State or Federal 
Law. 

The Commission has considered the facts presented here, and is fully 
cognizant of the value and convenience to protestants of the service involved. 
However, there does not appear any reason or justification for requiring 
applicant to continue to perform said service when it has been shown 
that it is contributory to a substantial and continuing operating loss. Accordingly, 

It Is Ordered, That the application herein be, and same is hereby, 
approved. 

By Order of the Commission. 
This 13th day of September, 1946. 



Chas. Z. Flack, Chief Clerk 



Docket No. 3679 



APPLICATION OF NORFOLK AND WESTERN RAILWAY COMPANY 

TO ABANDON AND DISMANTLE ITS STATION SHED AT 

DENNIS, N. C. 

Order 

By application filed August 30, 1948 the Norfolk and Western Railway 
Company seeks authority to abandon and dismantle its station shed at Dennis, 
N. C. Affidavit attached to said application indicates compliance with the 
ten-day's-notice requirement of Practice Rule 13. No opposition to the proposed 
abandonment and dismantlement has been expressed to the Commission. An 
investigation of the matter by a member of the staff of the Commission 
revealed no opposition on the part of residents in the vicinity of Dennis. 

Dennis, a non-agency station is located between Walnut Cove and Walkertown 
on applicant's Walnut Cove to Winston-Salem line, a distance of 5.0 miles 
from Winston- Salem and 4.0 miles from Walkertown. 

Applicant's statement shows no inbound or outbound shipments of freight 
at this point, nor has there been any passengers handled from or to 
this point from January 1, 1943 through July 31, 1948. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require future maintenance 
of station facilities at Dennis, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 
This 7th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4497 



Decisions and Adjustments of Complaints 263 

APPLICATION OF NORFOLK SOUTHERN RAILWAY COMPANY 
FOR AUTHORITY TO DISCONTINUE ITS PASSENGER STATIONS 
AND PASSENGER ACCOMMODATIONS AT ITS STATIONS, AND 
TO DISCONTINUE HANDLING PASSENGERS ON ITS TRAINS 1 
AND 2 AND TO DISCONTINUE OPERATING THE SAID TRAINS 
ON SUNDAY; BETWEEN THE VA.-N. C. STATE LINE AND 
RALEIGH, N. C. 

Order 

Appearances : 

Robert N. Simms, Jr. for applicant. 

J. C. B. Ehringhaus for Brotherhood of Locomotive Engi- 
neers, Brotherhood of Locomotive Firemen and Enginemen, 
Order of Railway Conductors, Brotherhood of Railway Train- 
men and individual protestants, Willard T. Kyzer for Green- 
ville Chamber of Commerce, John G. Thomas for Wilson 
Chamber of Commerce and the town of Wilson, Wilford S. 
Whitley, Jr. for Plymouth Merchants Association Town of 
Plymouth and Washington County, J. W. Turner for Brother- 
hood of Locomotive Engineers. 

By application filed November 29, 1947, the Norfolk Southern Railway 
Company seeks authority to discontinue its passenger stations and accommoda- 
tions at its stations, and to discontinue handling passengers on its trains 1 
and 2 and to discontinue operating the said trains on Sunday ; between the 
Virginia-North Carolina State Line and Raleigh, N. C. Affidavit attached 
to application indicates compliance with the ten-day's-notice provisions of 
Practice Rule 13. Pursuant to receipt of numerous expressions of opposition 
to and protest against the proposed discontinuance, the matter was set and 
came on for hearing December 22, 1947, with appearances as shown above. 

Trains 1 and 2 operate over applicant's main line between Moyock and 
Raleigh, N. C, a distance of approximately 211 miles; and serve 32 stations, 
including Elizabeth City, Edenton, Plymouth, Washington, Greenville, Wilson, 
Bailey, Zebulon, Knightdale, and Raleigh. Passengers, United States Mail 
and Express are handled on these trains daily except there is no Express 
traffic handled on Sunday. Applicant has requested the United States Post 
Office Department to arrange for substituted service for handling the mail 
that now moves on trains 1 and 2 on Sundays, in the event the application 
is approved. No change is proposed in mail and express service on week days. 

It is represented by applicant that the passenger services sought to be 
discontinued are now rendered at a loss, which constitutes a burden upon its 
freight service. The total revenue received from the operation of trains 1 
and 2 during the period January 1, 1946 to September 30, 1947, inclusive, 
amounted to $238,668.03 while direct costs (costs directly assignable to the 
service) during the same period amounted to $494,035.76. The difference 
between these two figures, $255,367.73 does not represent the total deficit 
resulting from the operation of said trains as there were certain expenses 



264 N. C. Utilities Commission 

common to the operation of all freight and passenger trains which may in 
part, be properly assigned to the operation of trains 1 and 2. Of the 
foregoing figures Applicant shows that $69,596.64 was passenger revenue and 
$179,329.83 was the direct cost of handling and accommodating passengers, 
leaving a deficit, direct costs under revenue of $109,733.19. This figure is 
also exclusive of the expense assignable to freight service and all other 
operations. These cost and revenue figures result from the entire operation 
between Norfolk, Va., and Raleigh. Applicant has shown the figures divided 
between North Carolina and Virginia in proportion to the mileages, i. e., 
Virginia 2\ miles, North Carolina 211 miles. 

During the calendar year 1946, the following revenues were derived from 
the operation of trains 1 and 2- 

Average 

Per Month 

Passenger $53,272.12 $4,440 

Mail 44,687.14 3,723 

Express 47,075.23 3,925 

Total $145,034,49 $12,088 

During the first nine months of 1947, the similar figures were: 

Average 
Per Month 
Passenger $16,324.52 $1,360 

Mail 
Express 
Total 

The decline in average monthly passenger revenue, during the latter period 
under the former was $3,080 or 69.4% ; in average monthly mail revenue 
it was $760 ov 20.4% ; that in average monthly express revenue was $485 
or \2A% ; and average monthly total passenger service revenue diminished 
$4,285 or 35.5%. The actual and relative decline in average monthly passenger 
revenue was much greater than in average monthly mail and express revenues. 
Applicant anticipates no change in its declining revenues from these trains ; 
the revenue from passenger fares iti particular. 

Passenger revenue per train-mile during the thirteen months, September 
1946 to September 1947 inclusive, resulting from the operation of trains 1 and 
2, ranged from 9.1 to 21.5 cents, and averaged 14.2 cents. These unit 
revenues measured by any yardstick are extremely low. Mail and express 
revenues per train-mile computed from the data presented do not appear 
to be subnormal, nor are they high enough to have any appreciable offseting 
effect on the low passenger revenues per train-mile. Mail revenue per train-mile 
during the same period ranged from 25.3 cents to 31.3 cents and averaged 
27.6 cents. Express revenue per train-mile ranged from 20.0 cents to 51.3 
cents and averaged 32.3 cents. The resulting passenger service revenues per 
train-mile, due to the effect of the low unit passenger revenues, appear to 
be very low. They range from 64.7 cents to 88.7 cents and average 74.1 
cents- The two principal reasons for the extremely low unit passenger 



35,554.85 


2,963 


41,754.17 


3,480 


$93,633.54 


$7,803 



Decisions and Adjustments of Complaints 265 

revenues are low weighted average occupancy of trains and short average 
journey of passengers. The weighted average occupancy (passenger-miles per 
train-mile) during the period September 1946 to September 1947, inclusive 
was 6.7 passengers per train. During that period the weighted average length 
of journey was 26.2 miles. 

The communities now served by trains 1 and 2 appear to be adequately 
served by bus lines. The Carolina Coach Company operates 10 eastbound 
and 11 westbound schedules daily, between Raleigh and Wilson, serving also 
Wendell, Zebulon, Middlesex and Bailey with seven of these buses eastbound 
and eight westbound. Between Wilson and Washington it operates seven 
schedules eastbound and seven westbound daily. Farmville and Greenville are 
served by these buses. The Carolina Coach Company also operates directly 
between Raleigh, N. C. and Norfolk. Va., via either Rocky Mount or 
Roanoke Rapids. It has 17 northbound and 17 southbound schedules daily 
between these points. 

The Norfolk Southern Bus Corporation's line parallels applicant's line 
between Washington, N. C. and Norfolk, Va., serving among other points, 
Elizabeth City, Hertford, Edenton, Plymouth and Washington. It operates 
six southbound and six northbound schedules daily between Norfolk and 
Washington. In addition it operates two schedules daily in each direction 
between Edenton and Washington. There are also additional schedules on 
Sundays between these points. 

Applicant's passenger service is a casualty of our extensive network of hard 
surfaced highways. Private and bus transportation have reduced what was, 
at one time, a necessary and complete passenger transportation service, extending 
over practically its entire line, to the two remaining trains, here involved. 
In the order in Dockets 1241-1247, inclusive, dated April 16, 1938 discontinuance 
of passenger service was authorized with respect to the following segments 
of its line: 

Bridgeton to Oriental Madceys to Columbia 

Edenton to Suffolk Aberdeen to Asheboro 

(line now abandoned) Pinetown to Belhaven 

Fayetteville to Varina Marsden to New Bern 

Similar authority was extended in connection with passenger service between 
Raleigh and Charlotte in the order in Docket No. 1248, dated July 29, 1938. 
Prior to July 29, 1938, regular passenger operations over the route between 
Charlotte and Raleigh had long been displaced by mixed train service, and 
on that date the Receivers then operating the railroad were authorized to 
completely discontinue the carriage of passengers on that part of the main 
line. 

During the late war when for various reasons the density of railroad 
passenger traffic broke all previous records, the rail lines applied for a 
substantial increase in fares, which was granted to the applicant herein 
on a showing of particular need, but which in general was denied to the 
trunk lines. Despite authority to substantially increase fares granted to 



266 N. C. Utilities Commission 

one carrier and denied others at the same time, that action being sustained 
by the United States Supreme Court (North Carolina v. United States 325, 
U. S. 507), we are convinced that no amount of increase in fares would 
compensate the applicant for transporting the few available passengers who 
oflfer themselves, and further, it is our opinion that the small number of 
passengers now availing themselves of the service would not be appreciably 
inconvenienced upon being deprived of the facilities under consideration. 

It is with reluctance that we authorize the elimination of a long standing 
service of this kind, however, in light of the facts before us, it clearly 
appears that perpetuation of the service sought to be eliminated will be 
contrary to the interest of the general public. Necessity requires the cessation 
of this service to lighten the burden of it on other operations which are 
conducted by the applicant. Granting the authority in conformity with the 
application as sought does not mean that the passenger stations involved 
may be dismantled without additional specific authority as to each and all 
of them. 

It Is Ordered, That the application of Norfolk Southern Railway Company 
for authority to discontinue the use of its passenger stations for the accommo- 
dation of passengers and to discontinue the handling of passengers on its 
trains Nos. 1 and 2 and to discontinue the operation of said trains on Sundays 
between the Va.-N. C. State Line and Raleigh be and the same is hereby 
authorized ; 

It Is Further Ordered, That the foregoing authority be and same is 
approved to become effective and in force on February 1, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST; 

Chas. Z. Flack, Chief Clerk 

By the Commission 

This 19th day of January 1948. 

Docket No. 4254 

APPLICATION OF THE PIEDMONT AND NORTHERN RAILWAY 

COMPANY FOR AUTHORITY TO WAIVE COLLECTION OF 

DEMURRAGE CHARGES ON 57 CARLOADS OF SAND AND GRAVEL 

DELIVERED TO CHARLOTTE, N. C 

Order 

By application filed May 20, 1947, the Piedmont and Northern Railway 
Company seeks authority to waive collection of demurrage charges in the 
amount of $1,783.34, due on 57 carloads of sand and gravel delivered to the 
Transit-Mix Concrete Company, at Charlotte, North Carolina, under average 
agreement contract as described in Agent B. T. Jones' demurrage tariff 



Decisions and Adjustments of Complaints 267 

N. C. U. C. No. 17, the details of which are set forth in exhibit attached 
to said application. 

Certain of the cars described in the said exhibit contained lading that 
were in a frozen condition which prevented unloading and relief from an 
exigency of this character is provided in Paragraph 2, Section A of Rule 
in the above described tariff in the following language : 

"2. When, at the time of actual placement, lading is frozen or 
congealed so as to require heating, thawing or loosening to unload, 
the free time shall be extended forty-eight (48) hours, making a 
total of ninety-six (96) hours' free time, provided the consignee shall, 
prior to the expiration of forty-eight (48) hours from the first 7 :00 
A. M. (exclusive of Sundays and legal holidays) after actual placement 
on an other-than-public delivery track, or from the first 7:00 A. M. 
(exclusive of Sundays and legal holidays) after actual placement 
and after the day on which notice of arrival has been sent or 
given by this railroad of a car delivery on a pubHc delivery track, 
send or give this railroad's agent a written statement that the lading 
of the car or cars therein identified by initials and car numbers 
will require heating, thawing or loosening to unload. If such written 
statement is mailed, the date of mailing will be settled by the 
postmark." 

Consignee, Transit-Mix Concrete Company, failed to furnish notice within 
the required time concerning the condition of the lading of these cars. 
However, it appears that the failure to do so was through oversight and 
said company urged the filing uf this application. 

Upon consideration of the facts presented, the Commission has concluded 
that the application herein should be approved. Accordingly, 

It Is Ordered, That the application herein be and the same is hereby approved. 

By Order of the Commission. 
This 28th day of June, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4083 

APPLICATION OF PIEDMONT AND NORTHERN RAILWAY 

COMPANY AND CITY OF GASTONIA THAT PIEDMONT AND 

NORTHERN RAILWAY COMPANY BE AUTHORIZED TO 

RELOCATE ITS LINE OF RAILWAY INTO ITS FREIGHT 

STATION AND TERMINAL IN THE CITY OF GASTONIA, AND 

THEREUPON TO ABANDON ITS OPERATIONS ALONG 

FRANKLIN AVENUE IN SAID CITY, TO ABANDON ITS 

SWITCHING SERVICE TO TRENTON COTTON MILLS, GASTONIA 

COCA-COLA BOTTLING COMPANY, FIRESTONE TEXTILES, INC., 

BLOOM MILLS, INC., AND PARKDALE MILLS, INC., AND TO 

ABANDON ITS LOCAL STREET RAILWAY SERVICE IN SAID 

CITY, SUCH RELOCATION AND ABANDONMENT TO BE MADE 



268 N. C. Utilities Commission 

PURSUANT TO AND SUBJECT TO THE TERMS AND CONDITIONS 

OF THE CONTRACT OF OCTOBER 14, 1946, BETWEEN THE CITY 

AND THE RAILWAY COMPANY. 

Order 

Appearances : Mr. Ernest R. Warren 

Mr. W. S. O'B. Robinson, Jr. 

For Applicants 

This Cause came on to be heard, and was heard, before the Commission 

at its office in the City of Raleigh, North Carolina, on Tuesday, May 4th, 

1948, at three o'clock P. M., and the applicants having introduced evidence 

in support of their application, the Commission finds the following facts: 

1. The Piedmont and Northern Railway Company and the Cit^ of 
Gastonia duly filed with the Commission their verified application in the 
above entitled matter on April 17, 1948, and the Commission on said 
date duly made and entered its order directing that a public hearing upon 
said application be held in the office of the Commission, in the City of 
Raleigh, North Carolina, at three o'clock P. M., on Tuesday, May 4th, 
1948, that notice of said public hearing be published in the Gastonia Gazette, 
a newspaper of general circulation in the City of Gastonia, North Carolina, 
in at least three issues, the last of which publications to be at least three 
days prior to the date of the hearing; and that a copy of said application, 
together with a copy of the order, setting the same down for hearing, be 
served upon Trenton Cotton Mills, Gastonia Coca-Cola Bottling Company, 
Firestone Textiles, Inc., Bloom Mills, Inc., and Parkdale Mills, Inc., by the 
Clerk of this Commission mailing a certified copy of said application and 
of said order, by Registered Mail, to each of said parties at least ten days 
prior to the date of the hearing. Pursuant to said order of the Commission 
notice of said hearing was duly published in the Gastonia Gazette on 
April 22nd, 24th, 26th, 28th and 30th, and May 1st, 1948, and certified 
copies of said application and of the order of this Commission setting 
said application down for hearing were duly mailed by the Clerk of this 
Commission, on April 17, 1948, by Registered Mail, return receipt requested, 
to Trenton Cotton Mills, Gastonia Coca-Cola Bottling Company, Firestone 
Textiles, Inc., Bloom Mills, Inc., and Parkdale Mills, Inc. 

2. The Piedmont and Northern Railway Company is a corporation duly 
organized and existing under the laws of the State of South Carolina. It 
is duly authorized to conduct and carry on its business as a common carrier 
of freight and Passengers by railway in the State of North Carolina. 

3. The City of Gastonia is a municipal corporation duly organized and 
existing under the laws of the State of North Carolina. 

4. On September 10, 1908 the Mayor and Board of Aldermen of the 
City of Gastonia, by ordinance and resolution duly adopted, granted unto 
W. S. Lee and L. C. Harrison, their successors, lessees and assigns, the 



Decisions and Adjustments of Complaints 269 

franchise and right "to own, construct, equip, maintain and operate a line 
or Hnes of street railway, run by electricity or other motive power" for 
the transportation of freight and passengers, in the City of Gastonia. This 
franchise, through assignments, is now owned by Piedmont and Northern 
Railway Company. 

5. Piedmont and Northern Railway Company, acting under the pursuant 
to this franchise, constructed and now owns and operates a line of railway 
for the transportation of freight and passengers along Franklin Avenue in 
the City of Gastonia ; it constructed and now owns and operates side tracks 
from its tracks on Franklin Avenue by means of which side tracks it 
renders switching service to Trenton Cotton Mills, Gastonia Coca-Cola 
Bottling Company, Firestone Textiles, Inc., Bloom Mills, Inc., and Parkdale 
Mills, Inc., and, by means of its track along Franklin Avenue, it also 
maintains a local street railway service in the City of Gastonia. 

6. The City of Gastonia has duly undertaken the project of widening, 
resurfacing and improving said Franklin Avenue; and in order to improve 
the same so as properly and adequately to provide for the use thereof by 
the general public, including the general public of the City, in traveling over 
and along said Avenue, it is necessary and essential that the tracks and 
other facilities of the Railway Company be removed therefrom, and that 
the Railway Company surrender and abandon its right to continue to operate 
over and along said Avenue for the remainder of the term of its franchise; 
the term of said franchise being sixty (60) years from the date upon 
which it was granted. 

7. In connection with the project, and for the purpose of widening and 
improving said Franklin Avenue, the North Carolina Highway and Public 
Works Commission has agreed to appropriate a substantial amount of money 
upon condition that the tracks and other facilities of the Railway Company 
be removed from said Avenue, and that the Railway Company surrender 
and abandon its right to continue to operate its trains and cars over and 
along said Avenue for the remainder of the term of its franchise, in 
order thereby to eliminate the highway hazards incident to such operation. 

8. On October 14, 1946 the City entered into a contract with the Railway 
Company by which in consideration of the City acquiring and vesting in 
the Railway Company, its successors and assigns, title to new rights of 
way for the relocation of the Railway Company's line of railway so as 
to enable it to reach its present freight station and terminal facilities in 
the City of Gastonia without having to operate along Franklin Avenue, 
the Railway Company agreed to relocate and construct its line of railway 
along said new rights of way and, upon the completion thereof, to abandon 
all operation along Franklin Avenue, except switch tracks across said 
Avenue for the purpose of serving present and future industries, and it 
agreed to permit the City, as a part of the improvement of Franklin Avenue, 
to remove the tracks and other equipment of the Railway Company now 
located along said Avenue. 

The performance of said contract between the City and the Railway Company 



270 N. C. Utilities Coatmission 

is subject to the condition that the Railway Company obtain from this 
Commission the required authority to remove its tracks and equipment on 
Frankhn Avenue and to relocate its line of railway into its present freight 
station and terminal facilities in said City, and to abandon switching service 
to -those industries now receiving such service from the Railway Company, 
but to which it can no longer render such service after the removal of 
its tracks along Franklin Avenue, and also the required authority to abandon 
its local street railway service in the City of Gastonia. 

The performance of the contract is subject to the further condition that 
the City shall make satisfactory provision for other switching service for 
those industries located West of Broad Street in the City of Gastonia who 
are now receiving switching service from the tracks of the Railway Company 
along Franklin Avenue, to-wit, Trenton Cotton Mills, Gastonia Coca-Cola 
Bottling Company, Firestone Textiles, Inc., Bloom Mills, Inc., and Parkdale 
Mills, Inc., including switching service between these industries and the 
Railway Company upon a reciprocal basis. 

The performance of the contract is also subject to the further condition 
that the City acquire and vest in the Railway Company the new rights 
of way necessary for the relocation of the Railway Company's line of 
railway into its present freight station and terminal facilities, except 
rights of way West of Avon Street which are to be acquired by the 
Railway Company. A copy of said contract of October 14, 1946 is attached 
to the application herein, marked "Exhibit 1". This contract by supplemental 
agreement between the City and the Railway Company has been extended 
until October 16th, 1948. 

9. The authority of the City of Gastonia to enter into said contract 
of October 14, 1946, as well as its authority to carry out and perform 
its part of said contract, was declared and upheld by the Supreme Court 
of this State in the case entitled Boyce v. City of Gastonia and Piedmont 
and Northern Railway Co., decided by the court on February 26, 1947, 
and reported in 227 N. C. p. 139. 

10. In order that said contract of October 14, 1946 may be duly carried 
out and performed by the Railway Company, it will be necessary for the 
Railway Company to abandon all operations along Franklin Avenue in the 
City of Gastonia except the operation of switch tracks across said Avenue 
for the purpose of serving present and future industries ; it will be necessary 
for it to abandon switching service to those industries hereinbefore named 
to which it can no longer render such service after the abandonment of its 
tracks along Franklin Avenue, and it will also be necessary for it to abandon 
its local street railway service in the City of Gastonia, as such local street 
railway service is now performed over its track along Franklin Avenue. 

11. The performance of said contract of October 14, 1946 between the 
City and the Railway Company, subject to the conditions therein stated, will 
be in the public interest. 

Now Therefore, It Is Ordered That said contract of October 14, 1946, 
between the City of Gastonia and the Piedmont and Northern Railway 
Company, be, and the same hereby is, approved. 



Decisions and Adjustments of Complaints 271 

It Is Further Ordered That the Piedmont and Northern Railway Company 
be, and it hereby is, authorized, subject to the terms and conditions of said 
contract of October 14, 1946, between said Company and the City of Gastonia, 
to relocate its line of railway into its freight station and terminal facilities 
in the City of Gastonia, and thereupon to abandon its operations along 
Franklin Avenue in said City, except the operation of switch tracks across 
said Avenue for the purpose of serving present and future industries ; to 
remove, or permit to be removed, its tracks and equipment along Franklin 
Avenue ; to abandon switching service to Trenton Cotton Mills, Gastonia 
Coca-Cola Bottling Company, Firestone Textiles, Inc., Bloom Mills, Inc., 
and Parkdale Mills, Inc. ; and to abandon its street railway service in 
the City of Gastonia. 

It Is Further Ordered That the Piedmont and Northern Railway Company 
advise the Commission in writing when the authority hereby granted has been 
exercised and carried into effect. 

By Order of the Commission. 

This 6th day of May, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 4379 

APPLICATION OF THE SEABOARD AIR LINE RAILROAD 

COMPANY FOR AUTHORITY TO ABANDON AND DISMANTLE 

ITS STATION SHED AT ADDOR, N. C 

Order 

By application filed July 16, 1948 the Seaboard Air Line Railroad Company 
seeks authority to abandon and dismantle its station shed at Addor, N. C. 
Affidavit attached to said application indicates compliance with the ten- 
days-notice requirement of Practice Rule 13. No opposition to the proposed 
abandonment and dismantlement has been expressed to the Commission. An 
investigation of the matter by an employee of the Commission revealed no 
opposition on the part of residents in the vicinity of Addor. 

Addor, a non-agency station is located between agency stations Aberdeen 
and Hoffman, N. C. on applicant's Raleigh and Hamlet line and is a distance 
of 4 miles from Aberdeen and 6 miles from Hoffman. The shed is in 
a very dilapidated condition and has not been used for over five years. 

Upon considering the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require the maintenance 
of the shed above described at Addor, N. C. Therefore, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 

By Order of the Commission. 

This 11th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 4455 ' 3 



272 N. C. Utilities Commission 

APPLICATION OF THE SEABOARD AIR LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE AGENCY SERVICE 

AT ELMORE, NORTH CAROLINA. 

' Order 

Appearances : 

For applicants — R. A. Walker, Abbeville, S. C. 
For protestants — None 

By application filed March 20, 1947, the Seaboard Air Line Railroad 
Company seeks authority to discontinue its agency service at Elmore, North 
Carolina. Affidavit attached to the application indicates compliance with the 
ten-days-notice provisions of Practice Rule 13. 

Upon receipt of several protests against the proposed discontinuance, the 
Commission set the matter for hearing in its hearing room in Raleigh on 
June 19, 1947. All known interested parties were notified. Appearances were 
as indicated above. 

Elmore is a local station on Applicant's Wilmington to Rutherfordton 
line, intermediate to agency stations Laurinburg and Laurel Hill, being 
3.1 miles from the former and 2.4 miles from the latter. 

The agent's salary at Elmore is $75 per month or $900 per annum. 
Other out-of-pocket costs, such as stationery and supplies, incident to furnishing 
this agency service were not introduced into the record. 

During the twelve-months period ending with October 31, 1946, applicant 
received an aggregate of $31.91 from passenger ticket sales at Elmore. The 
passengers purchasing these tickets will be inconvenienced very little, if any, 
in the event the agency service is discontinued, since they may purchase 
their tickets from the conductors on the trains. 

During the same period applicant received $980.88 from carload freight 
destined to Elmore. The only effect the proposed discontinuance would have 
on this traffic would be to require prepayment of the charges at origin. No 
carload or less carload freight traffic was forwarded from Elmore during 
this period. 

Applicant received $115.44 from less carload freight destined to Elmore 
during the Twelve months period. In the event of discontinuance of agency 
service, this traffic will either have to be set off the trains on the 
platform at Elmore, with the freight charges prepaid or handled through 
the agencies at Laurinburg and Laurel Hill. 

Upon consideration of the facts presented, the Commission has concluded 
that the public convenience and necessity are not of such proportions as to 
require maintenance of the service involved. Accordingly, 

It Is Ordered, That the application herein be and same is hereby, approved. 
By Order of the Commission. 
This 25th day of June, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3931 



Decisions and Adjustments of Complaints 273 

APPLICATION OF THE SEABOARD AIR LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE AGENCY SERVICE 

AT KITTRELL, N. C. 

Order 

By application filed May 10, 1947 the Seaboard Air Line Railroad Company 
seeks authority to discontinue its agency service at Kittrell, N. C. Affidavit 
attached to the application indicates compliance with the ten-days-notice 
provisions of Practice Rule 13. 

There was no opposition to the proposal expressed to the Commission, 
However, there was a request by a representative of the citizens of Kittrell 
for caretaker service in lieu of the agency. 

Kittrell is located between Henderson and Franklinton on applicant's Ports- 
mouth to Raleigh line and is a distance of 8 miles from both points. 

Applicant submitted statement of freight and passenger earnings accruing 
to applicant and cost of operating this agency for the years 1945 and 
1946. This statement shows total revenue on less carload freight forwarded 
during this period to be only $10.11 an average of 42 cents per month 
and there were no carloads forwarded during this period. The revenue on 
less carload freight received was $510.09, an average of $21.29 per month. 
Revenue on carloads received was $5804.20 or an average of $242.00 per 
month. Passenger revenue was $373.95. an average of $15.58 per month. 

On inbound or "received" freight the proposal will affect the public conven- 
ience and necessity only to the extent that prepayment at origin will be 
required. The proposal would adversely affect the public convenience insofar 
as less carload freight forwarded is concerned. However, as indicated in 
the foregoing, revenue from this character of traffic averaged only 42 cents 
during the 24 months ending with December 1946. There would be some 
minor inconveniences occasioned by the proposal insofar as carload forwarded 
traffic is concerned, in that orders for car placement would have to be 
given to freight train conductors or communicated to the nearest agency 
station. However, there was not a single shipment of this character of traffic 
from Kittrell during the 24 months above mentioned. Passenger ticket sales 
could be handled easily by conductors on trains without inconvenience to 
the public. 

Upon consideration of the above matters the Commission finds that the 
future public convenience and necessity do not require the maintenance of 
agency service at this point and can be reasonably served by a caretaker 
in lieu of an agent. Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved, 
provided that immediately upon withdrawal of agency service a caretaker 
be placed in charge of the station at Kittrell. 

By Order of the Commission. 
This 9th day of August, 1948. 

Chas. Z. Flack, Chief Clerk 
Docket No. 3989 



274 N. C. Utilities Commission 

APPLICATION OF RAILWAY EXPRESS AGENCY FOR AUTHORITY 
TO DISCONTINUE AGENCY SERVICE AT KITTRELL, N. C. 

Order 

By application filed August 30, 1948 the Railway Express Agency seeks 
authority to discontinue its agency service at Kittrell, N. C. Affidavit attached 
to the application indicates compliance with the ten-days-notice provisions 
of Practice Rule 13. 

The Seaboard Air Line Railroad Company was granted authority to 
discontinue its agency service at this station under order in Docket Number 
3989 dated August 9, 1948. 

This was a joint agency maintained by the Seaboard Air Line Railroad 
Company and the Railway Express Agency. Therefore, in order to continue 
agency service applicant would have to bear the agency expense individually. 

Applicant submitted statement of revenue and expenses from July 1947 
through June 1948. This statement shows an average of Zl shipments handled 
at this station per month. The average revenue per month was $91.25 and 
average expenses per month was $12.02. 

Upon consideration of the above matters the Commission finds that the 
public convenience and necessity do not require the maintenance of agency 
service at this point. Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 
This 30th day of August, 1948. 

Chas. Z. Flack, Chxe\ Clerk 

Docket No. 3989 



APPLICATION OF SEABOARD AIR LINE RAILROAD COMPANY 
FOR AUTHORITY TO ABANDON AND DISMANTLE THE 
SIDETRACK LOCATED AT LAMDEN, NORTH CAROLINA. 

Order 

By application filed November 12, 1947 the Seaboard Air Line Railroad 
Company seeks authority to abandon and dismantle its sidetrack at Lamden, 
N. C. Affidavit attached to the application indicates compliance with the ten- 
day's-notice requirement of Practice Rule 13. 

Lamden is located on applicant's Norlina to Portsmouth, Va. line, intermediate 
to Vaughn and Macon, being one mile from the latter. 

The State Highway and Public Works Commission has recently improved 
the county road in the vicinity of Lamden and in so doing, widened the 
road to the extent that the switch to the Lamden spur track is located on 
the highway right of way, and the switch stand represents a hazard to 
vehicular traffic. 



Decisions and Adjustments of Complaints , 275 

Applicant proposes to construct a log loading platform beside its sidetrack 
at Macon in order to facilitate the loading of logs to the extent that 
there will be no lessening of available facilities to shippers in the vicinity 
of Lamden. No opposition to the proposed abandonment and dismantlement 
has been expressed to the Commission. An investigation of the situation 
in the vicinity of Lamden by an employee of the Commission revealed that 
applicant had already removed the switch because it was located four 
feet from the recently constructed hard surface highway; and that pulpwood 
and logs formerly being handled at Lamden were being handled over the 
improved facilities at Macon. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity will be amply served by the new 
facilities at Macon, and that the sidetrack here involved is no longer 
required in the interest of public convenience and necessity. Accordingly; 

It Is Ordered, That the application herein be, and the same is hereby, 
approved. 

By Order of the Commission, 
This 1st day of April. 1948. 

Chas. Z. Flack, Chie] Clerk 

Docket No. 4237 

APPLICATION OF THE SEABOARD AIRLINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE AGENCY SERVICE 

AT LEMON SPRINGS, NORTH CAROLINA. 

Order 

Appearance : Murray Allen, Raleigh, N. C. for Applicant 

By application filed April 18, 1947, the Seaboard Air Line Railroad 
Company seeks authority to discontinue Agency service at Lemon Springs, 
North Carolina. Affidavit attached to the application shows compliance with 
the ten days' notice provision of Practice Rule 13. 

Two letters and two petitions opposing the proposed discontinuance were 
received by the Commission and upon consideration of these and of a report 
of an investigation at Lemon Springs by a member of its staff, the matter 
was assigned for hearing which was held in Raleigh on September 25, 1947 
in the Commission's hearing room. No one appeared to protest the proposed 
discontinuance. Appearance for the applicant is indicated above. 

Lemon Springs is located on Applicant's main line, intermediate to agency 
stations Sanford and Cameron, North Carolina, being d.d miles from the 
former and 5.6 miles from the latter. Its population of approximately 150 
is served by three stores. 

Applicant affords Lemon Springs motor freight service which is coordinated 
with its rail freight service. Its trucks are scheduled to arrive at noon 
daily but usually arrive between that time and 1 :00 P M. 



276 N. C. Utilities Commission 

The direct cost (wages of the agent, lights, heat, stationery and supplies) 
of maintaining the agency service involved was $2,885.66 and $3,151.24 during 
the years 1945 and 1946 respectively. The corresponding monthly averages 
were approximately $241 and $263. The estimated cost during 1947 will be 
$3,231.93 or an average of $269 per month. Total revenue received by 
applicant from ticket sales at Lemon Springs during the 12 months ended 
with October 1946 was $187.21, an average of $15.61 per month. During the 
10 months ended with August 1947 the total was $79.59 or an average of 
$7.96 per month. The decline in the average per month, the latter period 
under the former was $7.65 or 49%. The only effect the proposed discontinuance 
would have on passenger traffic is that departing passengers will be required 
to purchase tickets from conductors on the trains rather than from the agent. 

During the 12 months ended with October 1946 there were only two 
months during which carload shipments were forwarded from Lemon Springs, 
viz : July and August, 1946. The record does not show but this was 
presumably fresh peach traffic from which Applicant received $564.69. During 
the 10 months ended with August 1947 the only carload traffic forwarded 
from Lemon Springs was 11 cars of peaches which moved during July 
and August, 1947. The record does not show how much revenue was derived 
from this traffic. In the event of discontinuance of agency service matters 
such as car supply and prepayment in connection with this traffic would 
have to be handled through the agent at either of the adjacent stations. 

Applicant received an aggregate of $2,439.16 from carload freight received 
at (inbound to) Lemon Springs during the 12 months ended with October 
1946, or an average per month of approximately $203. During the 10 
months ended with August 1947 the corresponding aggregate was $5554.96. 
However, this figure included revenue from a large but sporadic movement 
during May and June 1947 composed of 34 cars of gravel and 6 cars of 
asphalt, both for the State Highway Department. The average per month 
during the ten months was $555.50 and during the same period exclusive 
of May and June was $127 approximately. Discontinuance of agency service 
at Lemon Springs would necessitate prepayment of freight charges on this 
traffic. Otherwise it would be unaffected. 

There were no less carload freight shipments forwarded from Lemon 
Springs during the 12 months ended with October 1946. The only traffic 
of this character included in the record was two shipments, weighing a 
total of 222 pounds which moved during August 1947. It appears that 
in the event of discontinuance of agency service, applicant's coordinated 
motor freight service will ensure convenient, regular and dependable future 
movement of this traffic. 

Applicant received a total of $275.45 or an average of $23 per month 
from less carload traffic received (inbound) during the 12 months ended with 
October 1946. The record does not disclose the revenue received or any 
other data relative to this type of traffic during the period November, 1946 
to June 1947, inclusive. During July and August 1947 there were 22 shipments 
weighing a total of 6402 pounds. The revenue produced by these shipments 
is not revealed in the record. In the absence of agency service, the freight 



Decisions and Adjustments of Complaints 277 

charges on this traffic would have to be prepaid and may be handled either 
in rail direct or applicant's motor carrier-rail service. 

Upon consideration of the foregoing matters the Commission has concluded 
that the present and future public convenience and necessity do not require 
maintenance of agency service at Lemon Springs, North Carolina. Therefore, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 
This 18th day of October, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3970 

APPLICATION OF THE SEABOARD AIR LINE RAILROAD 

COMPANY FOR AUTHORITY TO DISCONTINUE AGENCY SERVICE 

AT WACO, NORTH CAROLINA. 

Order 

By application filed February 3, 1947, the Seaboard Air Line Railroad 
Company seeks authority to discontinue its agency service at Waco, North 
Carolina. Affidavit attached to said application indicates compliance with the 
ten-days-notice requirement of Practice Rule 13. 

No protests against the proposed discontinuance have been received by 
the Commission. 

Waco is located on applicant's line between Wilmington and Rutherfordton, 
intermediate to agency stations, Cherryville and Shelby, North Carolina, 
being 3.4 miles from the former and 7.S miles from the latter. 

Applicant pays its agent at Waco $75.00 per month, or an aggregate of 
$900.00 per year. Other station or transportation expense assignable to 
freight and passenger traffic to and from Waco are not available. 

Of the aggregate freight revenue of $1,089.91 received by applicant during 
the twelve-months period, September 1945 to August 1946, inclusive, from 
traffic to and from Waco, $839.40 was for the movement of carload traffic, 
which may continue to move at very little or no inconvenience in the 
absence of agency service. The remaining $250.51 was received from less 
carload traffic. The public convenience will be adversely affected as to this 
small portion of the traffic but the effect will be mitigated by the proximity 
of agency service at Cherryville. 

During the same twelve-months' period, applicant received an aggregate 
of $325.81 from the sale of passenger tickets at Waco. This traffic will not 
be inconvenienced by the proposed discontinuance, since the departing passengers 
may purchase tickets from conductors on the trains. 

The Commission has, upon consideration of the facts presented, concluded 
that there is not a sufficient public necessity and convenience involved 
to require maintenance of the agency service at Waco. Accordingly, 



278 N, C. Utilities Commission 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 
This 3rd day of June, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3873 

APPLICATION OF THE SEABOARD AIR LINE RAILROAD 

COMPANY FOR AUTHORITY TO CHANGE THE SCHEDULE OF 

MIXED TRAIN NO. 211 OPERATING BETWEEN MONCURE AND 

PITTSBORO, NORTH CAROLINA. 

Order 

Appearances : 

Murray Allen for applicant. 

F. C. Upcurch for protestants. 

By application filed May 15, 1948, the Seaboard Air Line Railroad Company 
seeks authority to change the schedule of its mixed train No. 211 as 
follows : 

Present Proposed 

Leave Moncure 4 :00 p. m. 8 :30 a. m. 

Arrive Pittsboro 4:40 p. m. 9:10 a. m. 

Affidavit attached to the application indicates compliance with the ten- 
days-notice requirement of Practice Rule 13. Subsequent to the date of filing, 
applicant proposed to make the change for a probationary period not greater 
than 90 days. The schedule of movement in the reverse direction of this 
train, designated as No. 212 is: 

Leave Pittsboro 10:10 a. m. 

Arrive Moncure 11:00 a. m. 

No change is proposed in the schedule of train No. 212. 

The Commission, upon consideration of numerous expressions of protest 
against the proposal received, docketed and heard the matter in its hearing 
room in Raleigh on September 8, 1948. Appearances are indicated above. 

Pittsboro is on the end of an eleven-mile branch line that connects 
with Applicant's main line at Moncure. Trains 211 and 212 actually operate 
to and from Sanford, a common junction point, twelve miles south of Moncure 
on said main line, for the purpose of handling Pittsboro Branch freight 
traffic, set-off or picked-up at Sanford by main line trains. 

The proposal will not affect passenger travel between Pittsboro and 
points on or beyond applicant's main line which requires transfer at Moncure. 
Train 211 does not now and will not under the proposal make connection 
with any main line train. Train No. 212 arrives at Moncure twenty-five 
minutes before departure of Northbound local train No. 4, affording passengers 



Decisions and Adjustments of Complaints 279 

from Pittsboro destined to Raleigh and points north thereof convenient 
service. According to evidence adduced, passenger travel on trains 211 and 
212 is practically non-existent. 

The proposed change will afford improved service to shippers and receivers 
of freight at Pittsboro and will result in a more economical use of the 
car supply. At present cars containing traffic destined to Pittsboro are 
set-out by main line trains, principally at Sanford, too late for movement via 
train 211 and when they arrive, and are placed for unloading at Pittsboro 
the next day, it is after the closing time of the business establishments. 
Consequently, unloading is not accomplished until the following day. Under 
the proposal this traffic will be handled in train 211 the morning following 
the night during which it is set out by the main line trains and will 
arrive and be placed in Pittsboro in ample time for unloading the same 
day. The average saving in time per inbound car will be approximately 
24 hours. 

The direct additional cost to applicant of the proposed change will be 
approximately $260 per month. However, this will, in some measure be off-set 
by reduced per diem car expense. 

Under the proposal, the rolling equipment used on trains 211 and 212 
will remain overnight in Sanford instead of in Pittsboro, as at present, and 
the members of the operating crew now residing in Pittsboro will have 
to make arrangements to be in Sanford in the morning early enough to 
complete the preliminary work there, and operate into Moncure in time 
for departure at 8 :30 a. m. from the latter point. This does not appear 
to entail any added hardship for the crew, as a whole, since about 50% 
of its members commute by auto between Sanford and Pittsboro, at present. 
The engineer lives in Raleigh and the conductor lives out from Cameron, 

Upon consideration of these matters, the Commission has concluded that 
the proposal warrants approval for an experimental period of three months, 
after which the matter will be reviewed. 

It Is Ordered, That the applicant herein be and same is hereby authorized 
to change the schedule of its mixed train No. 211 as proposed, eflfective 
October 1, 1948 and to maintain the proposed schedule for the three months 
period ending with December 31, 1948, or until further order of the 
Commission. 

It Is Further Ordered, That the record herein be held open pending 
further consideration of the experimental change herein authorized, and that 
in due course the applicant report the results of operations under the altered 
schedule. 

By Order of the Commission. 
This 18th day of September, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 2397 



280 N. C. Utilities Commission 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 
AUTHORITY TO DISCONTINUE AGENCY SERVICE AT ALMOND, 

NORTH CAROLINA. 

Order 

Appearances ; 

H. E. Powers and G. L. Jones for the applicant. 

By application filed March 13, 1948 the Southern Railway Company seeks 
authority to discontinue agency service at Almond, N. C. Affidavit attached 
to the application shows compliance with the ten-days'-notice requirement of 
Practice Rule 13. 

Upon consideration of expressions of protest against the proposed change 
in character of service the Commission docketed and heard the matter in 
the Buncombe County Court House at Asheville on August 19, 1948 with 
the above appearances. No one appeared in behalf of protestants. 

Almond is located on applicant's Murphy Branch intermediate to agency 
stations Bryson and Nantahala, being 19.9 miles from the former and 10.7 
miles from the latter. It is located on a hardsurfaced Highway about one 
mile from U. S. Highway No. 19 and is amply served by both freight and 
passenger motor vehicles. 

During the 24-months period, August, 1945 to July 1947 inclusive, applicant 
received the following average revenues per month from traffic at Almond: 

Character of Traffic 
Forwarded Freight Traffic C 

Received Freight Traffic 

Passenger Ticket Sales 

The public convenience and necessity will be affected to a very limited 
extent insofar as carload freight traffic is concerned if the service involved 
is discontinued. The principal change will be in the placement of orders for 
empty cars which will have to be given to conductors on the trains passing 
through Almond or to the agent at either Bryson or Nantahala, whereas 
at present these orders are handled directly with the agent at Almond. 
Less carload freight received will be affected slightly in that it will have 
to be prepaid at origin, but it appears that this condition is already being met 
to a large extent. The public convenience and necessity will be affected 
more insofar as less carload forwarded traffic is concerned, than as to any 
other category of traffic. However, as indicated in the foregoing tabulation 
there is very little of this traffic. The only affect the change will have on 
passenger traffic is that departing passengers will be required to pay their 
fares to train conductors rather than to the agent as at present. 

The average expense per month of maintaining the agency is $268.87. 
Upon consideration of these matters the Commission has concluded that 









Amount (Dollars) 


c. 


L. 




413 


L. 


C. 


L. 


20 


C. 


L. 




198 


L. 


C. 


L. 


31 

15 



Decisions and Adjustments of Complaints 281 

the public convenience and necessity do not require the future maintenance 
of agency service at Almond. Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 

This 20th day of September, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4348 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 

AUTHORITY TO ABANDON AND DISMANTLE ITS STATION 

BUILDING AT ARDEN, NORTH CAROLINA AND TO CONSTRUCT 

IN LIEU THEREOF A WAITING BOOTH. 

Order 

By application filed October 27, 1947, the Southern Railway Company 
seeks authority to abandon and dismantle its Station building at Arden, N. C. 
and to construct in lieu thereof a waiting booth similar to those at ^ther 
points on its line. Affidavit attached to the application indicates compliance 
with the ten-days'-notice provisions of Practice Rule 13. 

No expressions of opposition to the proposal have been received by the 
Commission. An investigation made by a Commission employee revealed no 
local opposition. 

Arden is a local, non-agency station on applicant's Asheville & Spartanburg 
line, intermediate to agency stations, Asheville and Fletcher, being 8.8 miles 
from the former and 3.0 miles from the latter. 

Substitution of a new waiting booth for the present dilapidated building 
appears to be in the interest of public convenience. Accordingly, 

It Is Ordered, That the application herein be, and the same is hereby 
approved. 



By Order of the Commission. 
This 1st day of December, 1947. 



Docket No. 1256 



Chas. Z. Flack, Chief Clerk 



APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 
AUTHORITY TO DISCONTINUE AGENCY SERVICE AT CLYDE, 

NORTH CAROLINA. 

Order 
Appearances : 

H. E. Powers and G. L. Jones for applicant. 
By application filed March 13, 1948 the Southern Railway Company 



282 N. C. Utilities Commission 

seeks authority to discontinue agency service at Clyde, N. C. Affidavit attached 
to the appHcation indicates compliance with the ten-days'-notice requirement, 
of Practice Rule 13. 

Upon consideration of expressions of protest received by the Commission 
the matter was set and heard in the Buncombe County Court House at 
Asheville, N. C. on August 19, 1948, with appearances for applicant indicated 
above. No one appeared on behalf of protestants. 

Clyde is located on petitioner's Murphy Branch intermediate to agency 
stations Canton and Lake Junaluska, being 4.4 miles from the former and 
3.3 miles from the latter. It is located on hardsurfaced U. S. Highways 
19-23 and is amply served by both freight and passenger motor carriers. 

During the 24 months period, August 1945 to July, 1947 inclusive, applicant 
received the following average revenues per month from traffic at Clyde ; 

Character of Traffic Amount (Dollars) 

Forwarded Freight Traffic (C. L.) 242 

Forwarded Freight Traffic (L. C. L.) 2 

'Received Freight Traffic (C. L.) 389 

Received Freight Traffic (L. C. L,) 111 

Passenger Ticket Sales 40 

The public convenience and necessity will be afifected to a very limited extent 
insofar as carload freight traffic is concerned if the service involved is 
discontinued. The principal change will be in the handling of orders for 
empty cars, which will have to be given to conductors on the trains passing 
through Clyde or to the agent at either Canton or Lake Junaluska whereas 
at present these orders are handled directly with the agent at Clyde, Less 
carload freight received will be affected slightly in that it will have to be 
prepaid at origin, however, that condition is already largely being met. The 
very small amount of less carload forwarded traffic will be affected more 
insofar as the public convenience is concerned than any other category of 
traffic in that it will have to be delivered to the freight train conductors 
or to the agents at nearby stations. There will be no inconvenience to 
passengers departing from or arriving at Clyde inasmuch as the only affect 
which will result from the proposed change will be that departing passengers 
will pay their fares to train conductors rather than to the agent. 

The average monthly expense of maintenance of the Clyde agency during 
the aforementioned two-year period was $288.15. 

Upon consideration of the matters presented the Commission has concluded 
that the future public convenience and necessity do not require maintenance 
of agency service at Clyde. Accordingly, 

It Is Ordered, That the application herein be and same is hereby approved. 

By Order of the Commission. 
This 20th day of September, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 2964 



Decisions and Adjustments of Complaints 283 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 
AUTHORITY TO DISCONTINUE AGENCY SERVICE AT ETOWAH, 

NORTH CAROLINA. 

Order 

Appearances: 

H. E. Powers, for applicant, Bruce Drysdale and W. H, 

Holmes for protestants. 

By application filed December 16, 1947, the Southern Railway Company 

seeks authority to discontinue agency service at Etowah, North Carolina. 

Affidavit attached to the application indicates compliance with the ten-days'- 
notice requirement of Practice Rule 13. 

Numerous expressions of opposition to the proposed change in character 
of service were received by the Commission and upon consideration of these, 
the matter was set and heard at the Buncombe County Court House in 
Asheville on March 11, 1948 with appearances as indicated above. 

Etowah is located on the Asheville Division, Lake Toxaway Branch of 
the Southern Railway, intermediate to agency stations Hendersonville and 
Pisgah Forest, being 10.1 miles from the former and 9.2 miles from the 
•latter. Freight service only is afforded on this branch, express being transported 
in freight trains while mail is handled via a Star Route, hence the public 
convenience and necessity insofar as passenger traffic is concerned is not 
here involved. It is also located on U. S. Highway 64 and is served by 
the Blue Ridge Trucking Company. 

During the twenty-four months period ending with July, 1947, Applicant 
received $920.05 or an average of $38.35 per month from carload freight 
forwarded from Etowah. As to this type of traffic, the proposal to discontinue 
agency service will adversely affect the public convenience to the extent that 
orders for cars to be loaded will have to be communicated to the agent 
at either Hendersonville or Pisgah Forest or to the freight train conductors ; 
and to the extent that the charges on all such freight will have to be 
collected at destination. However, the plant of the Moland-Drysdale Corporation 
in Etowah whose headquarters is in Hendersonville, will not be inconvenienced 
by lack of agency service at Etowah since all transactions now handled at 
that station can, with no inconvenience, be handled at Hendersonville. The 
preponderance of all freight traffic to and from Etowah is consigned to or 
shipped by the Moland-Drysdale Corporation. 

During the twenty-four months period mentioned above. Applicant received 
$30,387.38 or an average of $1,266 per month from carload traffic destined 
to Etowah. Of this total amount of $13,836.20 was revenue from sporadic 
movements of roadway materials which took place during September, October 
and November 1945 and April and May 1947. Practically all of the remainder 
was from coal consigned to the Moland-Drysdale Corporation, which can 
receive notices and pay freight on collect shipments at its headquarters in 
Hendersonville with no inconvenience. 



284 N. C. Utilities Commission 

During the same twenty-four months period AppHcant received an aggregate 
of $17.36 or an average of 12 cents per month from less carload traffic 
forwarded from Etowah. The public convenience will be more adversely affected 
as to this small segment of traffic, by the proposed discontinuance than as 
to any other. The proposal would necessitate these shipments being billed 
"collect at destination" on train conductors' waybills or being shipped from 
Hendersonville or Pisgah Forest. 

Applicant received $629.81 or an average of $26.25 per month during the 
twenty-four months period ending with July 1947 from less carload traffic 
inbound to Etowah. The only adverse effect from a standpoint of convenience, 
the proposal will have on this traffic is that the freight charges will have 
tu be prepaid at origin on those shipments now being billed "collect at 
destination." 

Upon consideration of these matters, the Commission has concluded that 
the public convenience and necessity do not require the future maintenance 
of agency service at Etowah, accordingly, 

It Is Ordered, That the application herein be, and same is hereby, approved. 
By Order of the Commission. 
This 12th day of August, 1948. 

Chas. Z. Flack, Chie] Clerk 

Docket No. 1069 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 

AUTHORITY TO DISCONTINUE CARETAKER SERVICE AT 

ROCKFORD, N. C 

Order 

By application filed March 18. 1948, and amended on April 19, 1948, the 
Southern Railway Company seeks authority to discontinue its caretaker 
service at Rockford. N. C, a station located 5.9 miles from the agency 
station at Crutchfield. Affidavit attached to the application indicates compliance 
with the ten days' provisions of Practice Rule 13. 

Under date of September 24. 1948, Mr. C. B. Burris, Justice of the 
Peace, for and on behalf of the Citizens of Rockford, filed the only protest 
of record in this matter. Said protest was withdrawn on October 16, 1948. 
Wherefore, circumstances considered the Commission has concluded that public 
convenience and necessity does not require future maintenance of this caretaker 
service at Rockford. 

Therefore, It Is Ordered, That the application herein be, and the same 
is hereby, approved. 

By Order of the Commission. 
This 26th day of November, 1948. 

Chas, Z. Flack, Chie] Clerk 

Docket No. 2260 



Decisions and Adjustments of Complaints 285 

PETITION OF SOUTHERN RAILWAY COMPANY AND RAILWAY 

EXPRESS AGENCY, INC. FOR AUTHORITY TO DISCONTINUE 

AGENCY SERVICE AT SPENCER, N. C. 

Order Dismissing Application 

This cause having been regularly calendared for hearing and continued 
and the applicant through its Division Counsel, W. T. Joyner, has requested 
the withdrawal of the above application without prejudice, 

It Is, Therefore, Ordered, That said application be, and the same is 
hereby dismissed without prejudice. 

BY ORDER OF THE N. C. UTILITIES COMMISSION. 

This the 14th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 4387 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY, FOR 
AUTHORITY TO ELIMINATE TERRA COTTA AND FRIENDSHIP, 
N. C. AS A FLAG STOP FOR TRAINS 21 AND 22 AND TO 
ELIMINATE COLFAX, N. C AS A FLAG STOP FOR TRAIN 22. 

Order 

By application filed August 5, 1948 the Southern Railway Company seeks 
authority to discontinue flag stops for trains 21 and 22 at Terra Cotta and 
Friendship, N. C. and discontinue flag stop for train 22 at Colfax, N. C. 
Affidavit attached to the application indicates compliance with the ten-days'-notice 
requirement of Practice Rule 13. 

There was no opposition to the proposal expressed to the Commission. 
An investigation by a member of the staff of the Commission revealed 
no opposition on the part of residents in this vicinity. 

Terra Cotta, Friendship and Colfax are all non-agency stations on applicant's 
Danville Division, Wilkesboro Branch, between Greensboro and Kernersville, 
N .C. Terra Cotta is a distance of 4.2 miles from Greensboro and 13.3 
miles from Kernersville. Friendship is a distance of 9.9 miles from Greensboro 
and 7.6 miles from Kernersville. Colfax is a distance of 13.9 miles from 
Greensboro and 3.6 miles from Kernersville. 

Applicant's statement shows only one passenger handled at Terra Cotta 
thus far during 1948 and only 4 passengers handled at Friendship for same 
period. There are rarely any tickets sold to or from Colfax. 

Upon consideration of the foregoing matters the Commission has concluded 
that the public convenience and necessity do not require the stopping of 
trains 21 and 22 at these points. Therefore, 

It Is Ordered, That the application herein be, and same is hereby approved. 

By Order of the Commission. 

This 7th day of October, 1948. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4468 



286 N. C. Utilities Commission 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 

AUTHORITY TO REMOVE ITS SPUR TRACK AT GOVERNOR'S 

ISLAND, NORTH CAROLINA. 

Order 

APPEARANCE: S. S. Lewis, Asheville, N. C, for applicants. 

By application filed August 3, 1945, the Southern Railway Company seeks 
authority to remove its spur track at Governor's Island, N. C. A notice 
announcing its intention to file the application herein, remained posted on 
a stake in the ground near the said spur track for a period of ten days 
beginning with July 16, 1945. Affidavit attached to the application contains 
a sworn statement to this effect. 

Upon protest of the owner of the land adjacent to the spur, Mr, J. T. 
Ferguson, the matter was set and came on for hearing on January 30, 1947, 
at the Langren Hotel in Asheville, N. C, with the one appearance shown 
above. 

The spur is located on applicant's Murphy Branch of the Asheville Division, 
intermediate to Ela and Bryson, being 1.7 miles from the former and 2.5 
miles from the latter. 

In an interview with a member of the Commission's staff, prior to the 
hearing, the owner of the adjacent land stated that it had been probably 
two and a half years since he had used the track. He also stated that 
the only future traffic he knew of, that might use the siding, was one 
carload of fertilizer which could be handled at Bryson. 

Upon consideration of the facts presented, the Commission has concluded 
that the public necessity and convenience do not any longer require the 
maintenance of the spur track at Governor's Island, N. C. Accordingly, 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 
This 24th day of February, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3366 



Decisions and Adjustments of Complaints 287 

APPLICATION OF SOUTHERN RAILWAY COMPANY TO CHANGE 
SCHEDULE OF TRAIN NO. 40 AND TO DISCONTINUE STOPPING 
AT CONCORD, HIGH POINT, REIDSVILLE AND KANNAPOLIS. 

Order 

The Southern Railway Company seeks authority to improve the quality of 
equipment on its northbound Train No. 40 and to change the schedule of 
that train from the time shown under the "Present" column below to that 
shown in the column on the right which bears the caption "Proposed". 

Present Proposed 

Lv Gastonia 3:20 AM 12:05 AM 

Ar Charlotte 3 :50 AM 

Lv Charlotte 4:10 AM U :35 AM 

Lv Concord 4:42 AM * 

Lv Kannapolis 4:55 AM * 

Ar Salisbury 5:25 AM 1:30 AM 

Lv Salisbury 5:50 AM 1:35 AM 

Lv Spencer 6:00 AM 

Lv High Point 6:55 AM * 

Ar Greensboro 7:15 AM 2:40 AM 

Lv Greensboro 8:00 AM 2:45 AM 

Lv Reidsville 8 :29 AM * 

Asterisks shown under the "Proposed" column indicate proposal to discontinue 
the stopping of train No. 40 at those stations. Notice of intention to proceed 
was posted at all of the stations to be efifected and the only protests 
of record have been withdrawn. Applicant submitted a statement of passengers 
boarding and detraining at Reidsville and High Point under the present 
schedule. It appears from this statement that but little use is now made 
of the train and tliat other schedules and forms of service are available 
near the times of the present schedules. It is also apparent that with the 
addition of Pullman Cars and with the advance in time, of the proposed 
schedule that the changes contemplated will afford greater traveling convenience. 
In view of these circumstances : 

It Is Ordered, That the application of Southern Railway to change the 
schedule of its train No. 40 as shown above and to discontinue the stops 
indicated be, and the same is hereby approved. 

By Order of the Commission. 
This 16th day of December, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 4269 



288 N. C- Utilities Commission 

PETITION OF SOUTHERN RAILWAY COMPANY FOR AUTHORITY 

TO DISCONTINUE PASSENGER TRAINS 17 AND 18 OPERATING 

BETWEEN ASHEVILLE AND MURPHY. 

APPEARANCES : 
For the Applicant: 

H. E. Powers, Raleigh, North Carolina. 
W. T. Joyner, Raleigh, North Carolina. 

For the Protestants : 

James H. Howell, Jr., Waynesville, N. C, appearing for the 

Chamber of Commerce of Waynesville, Hazelwood, and Lake 

Junaluska. 
John P. Randolph, Bryson City, N. C, appearing for the 

citizens of western North Carolina. 
O. L. Anderson, Murphy, N. C, appearing for the Town of 

Murphy and citizens of the Town of Murphy, N. C. 
George and Burgin Pennell, Asheville, N. C, appearing for 

the N. C. Legislative Board of the Brotherhood of Locomo- 
tive Firemen and Engineers and the N. C. Legislative Board 

of the Brotherhood of Railroad Trainmen. 
Clyde H. Jarrett, Andrews, N. C, appearing for the Town of 

Andrews and the Andrews Rotary Club. 
J. E. Baumbarger, Asheville, N. C, appearing for the N. C. 

Legislative Board of Locomotive Firemen and Enginemen. 
Wade C. Hill, Canton, N. C, appearing for Canton Civitan 

and Chamber of Commerce. 
Francis J. Heazil, Asheville, N. C, appearing for Asheville 

Chamber of Commerce. 
C. C. Buchanan and Dan Thompkins, Sylva, N. C, appearing for 

Jackson County. 
B. C. Jones, Bryson City, N. C, appearing for Swain County 

and Bryson City. 

Hunter, Commissioner: After due notice as required by law, the petition 
of Southern Railway Company for authority to discontinue passenger trains 
17 and 18 operating between Asheville and Murphy came on for hearing 
at the County Courthouse in Asheville on August 13, 1947. The petition is 
based upon insufficient revenue from said trains to meet the direct expense 
of operating the same. 

General Statement 
Trains 17 and 18 are the only passenger trains now operating over 
any part of petitioner's rail line between Asheville and Murphy, a distance 
of 115.3 miles. The removal of these trains will amount to an abandonment 
of all passenger train service between said points. 

As shown by petitioner's timetable, train 18 leaves Murphy at 6:30 a. m. 
and arrives at Asheville at 10:30 a. m. Train 17 leaves Asheville at 10:30 
a. m. and arrives at Murphy at 3 :30 p. m. The rolling equipment used 



Decisions and Adjustments of Complaints 289 

in this service consists of four coaches and three engines, one of the 
engines being used as a stand-by, or for emergencies. Each train has two 
coaches, one of which is used for baggage, mail, and express, and the 
other is a passenger coach partitioned to provide for white and colored 
passengers. 

Train 17 pulls two box cars out of Asheville, one of which is set off 
at Canton and the other at Waynesville. These cars carry express for 
delivery at said points. 

Each train makes regular stops at about 20 points between Asheville 
and Murphy and stops at about the same number of other points on 
signal or flag. The towns served by these trains between Asheville and 
Murphy and the population of each as shown by the 1940 U. S. census are: 

Enka 500 

Hominy 50 

Candler 300 

Canton 5,037 

Clyde 516 

Lake Junaluska 150 

Waynesville • 2,940 

Hazelwood 1,508 

Balsam 450 

Willits ~ 37 

Addis 150 

Sylva 1,409 

Dillsboro 290 

Whittier 287 

Ela . 65 

Bryson 1,612 

Almond 250 

Nantahala Id ' f 

Topton • 120 

Andrews 1,520 

Marble 356 



Testimony For Petitioner 

The petitioner offered exhibits and oral testimony tending to show the 
direct expenses incurred and the revenues produced from the operations 
of said trains from month to month for a period of sixteen months beginning 
March 1, 1946, and ending June 30, 1947. Some of the items of expense 
are estimates based upon averages and experience from the maintenance 
and operation of trains, all of which are said to be in keeping with cost 
studies and approved accounting practices. Other items of cost were available 
and are actual, among which are wages paid engine and train crews 
employed in the operation of said trains. 

A condensed compilation of the revenues and expenses for said period 
of sixteen months, as shown by the exhibits offered, is as follows: 



290 N. C. Utilities. .Commission 

Trains 17 And 18 

Aggregate Figures During 16-Month Period. 

March, 1946, To June, 1947, Inclusive 

Direct Expenses, Total $146,247.26 

Revenues : 

Passenger $13,929.1 1 

Mail 23,671.33 

Express 7,946.80 

Total Passenger Service 45,547.24 



Excess-Direct Expenses over Revenues $100,700.02 



Wages — Engine and Train Crews $ 49,152.72 

Total Passenger Service Revenues 45,547.24 



Excess-Wages over Revenues $ 3,605.48 



Total Train-miles 1 1 1,836 

Averages Per Train-mile {in cents) 
Revenues : 

Passenger 12.45 

Mail 21.16 

Express 7.10 

Total 40.71 

Direct Expenses, Total 130.77 

Excess-Direct Expenses over Revenues 90.06 

Other testimony tended to show that Smoky Mountain Stages, Inc., a 
motor carrier authorized to transport passengers, their baggage, mail, and light 
express, operates seven schedules each way daily between Asheville and 
Murphy. It operates twenty-four additional schedules each way daily between 
Asheville and Waynesville. Trains and buses both serve intermediate points 
between Asheville and Murphy, including Enka, Canton, Clyde, Lake Junaluska, 
Waynesville, Sylva, Bryson City, Topton, Andrews, and Marble. 

The testimony shows that the rail mileage between Asheville and Murphy 
is 115.3 miles, and the highway mileage, as operated by said buses, is 
118 miles. The schedule running time by train westbound between said 
points is four hours and fifteen minutes and by bus three hours and fifteen 
minutes to four hours and fifteen minutes, some schedules being faster than 
others. The running time by train eastbound is five hours and by bus three 
hours and ten minutes to four hours and fifteen minutes. 

M. D. White, Superintendent of mail and express for petitioner, testified 
that the U. S. Post Office Department maintains daily star route service 
between Asheville and Murphy, serving every post office served by said trains 
between said points. 

One star route operation leaves Asheville at 2 :00 p. m. and arrives at 
Bryson City at 6:00 p. m. Another leaves Bryson City at 6:15 p. m. and 
arrives at Murphy at 8:30 p. m. The eastbound operation leaves Murphy at 
2:40 p. m. and arrives at Bryson City at 5:00 p. m. Another operation 



Decisions and Adjustments of Complaints 291 

leaves Bryson City at 9:30 a. m. and arrives at Asheville at 1:00 p. m. 

The witness testified that express service would be advanced by being 
handled by local freight trains 68 and 69 because of earlier departures 
and arrivals. Train 69 leaves Asheville at 5:15 a. m. and arrives at Murphy 
at 12:15 p. m. Train 68 leaves Murphy at 5:30 a. m. and arrives at 
Asheville at 12:45 p. m. 

Testimony For Protestants 
Mr. W. W. Wiggins of Bryson City testified that he is 70 years old and 
is familiar with the service provided by the petitioner from its beginning, 
that it has always been poor and the equipment poor and that the coaches 
are brought to the Murphy branch after they can no longer be used elsewhere, 
and that ' the service has improved very little within the last twenty 
years. 

Mr. C. S. Emerson, editor of Smoky Mountain Times, Bryson City, 
testified that he is familiar with the service on the Murphy branch and 
with services performed in other sections, that the schedules are not timed 
to accommodate local people who desire to go back and forth the same 
day, that the petitioner makes no effort to attract tourists to the many points 
of interest and beauty on its line between Asheville and Murphy, that its 
stations and depots act as a detriment rather than an invitation to tourists 
and the traveling public, and that the petition to discontinue, said trains 
discourages present and prospective industrial development in the area. 

Mr. Dan Thompkins, Sylva, testified that he had lived in Jackson County 
all his life, 57 years, used and observed trains 17 and 18, and that the 
condition of the equipment, these trains, and the stations is w^orse than 
it was 40 years ago ; that the petitioner does not observe the law requiring 
segregation of white and colored passengers on its trains ; that express 
is hauled in box cars at express rates ; that the removal of these trains 
will leave some 800 students at the Western Carolina Teachers College at 
Cullowee without train service and will affect some 100,000 people living 
in that area ; and that it appears that the service has been allowed to 
deteriorate with the idea of bringing on action for authority to discontinue 
the trains. 

Mr. F. S. Love, Superintendent of the Methodist Assembly, Lake Junaluska, 
testified that the Southern Methodist Assembly has an investment of half 
a million dollars at Lake Junaluska and that the removal of said trains 
will seriously affect the work and the investment at this point because of 
the need for the transportation of passengers and express and because of 
the effect and embarrassment in not being able to advertise train service 
to and from the assembly grounds. 

A number of witnesses from other points between Asheville and Murphy 
appeared at said hearing and vigorously protested the removal of said trains. 
Their testimony was to the same general effect as that above set out. 
The testimony of all of these witnesses tends to show that the equipment 
and service are both sub-standard and that little or no effort has been 
made in recent years to improve equipment, station facilities, or service. 



292 N. C. Utilities Commission 

The evidence is not in conflict as to the extent to which said trains 
are used. It is in conflict as to the pubhc demand and need for the 
service, as to the adequacy of the rolHng equipment and station facilities, 
and the proper servicing of coaches. The three locomotives now in use 
were built in 1911 and 1912. The evidence does not disclose when the 
coaches were built. 

Conclusions 
Some question was raised as to the exact amount of revenues received 
and expenses incurred from the operation of the trains in question, but in 
any view of the testimony we cannot escape the conclusion that the petitioner 
is sustaining a substantial net loss from the operation. According to the 
testimony, the petitioner pays the engine and train crews in charge of 
these particular trains approximately $225 per month in excess of the gross 
receipts from the operation. The out-of-pocket cost alone of operating one 
of these trains one mile is $1.30, for which the petitioner receives 40 cents, 
or sustains a net loss of 90 cents for each mile it operates one of these 
trains. This amounts to a loss of $103.77 for each one-way trip between 
Asheville and Murphy, a loss in excess of $6,000 per month or approximately 
$75,000 per year, A liberal discount for errors and methods of computation 
will still show a substantial loss from the operation. 

The contention was made that certain items of cost were estimated 
and, therefore, not accurate or reliable; for example, the item of $42,221.78 
for locomotive repairs during the 16 months covered by the exhibits. As 
understood by the Commission, this figure is based upon the average cost 
for repairs of locomotives operating the same number of miles within the 
same period of time. Average cost for such repairs is known and is reasonably 
accurate, although not exact for any particular locomotive. Presumably this 
item for repairs would have been the same if one or both of these trains 
had been involved in accidents and the actual repairs many times the sum 
shown in the exhibits. Such accidents do occur, and in such cases it would 
be manifestly improper to charge the expense to the particular operation. 
If such were the practice, a profitable operation may show a substantial 
net loss as the result of a single accident. 

The contention was also made by a number of witnesses that better 
trains, better station facilities, and better service between Asheville and 
Murphy would attract sufficient traffic to make the operation profitable. 
We think this is too speculative upon which to base any finding of fact. 
We find authoritative support for this view and for our decision of the 
case from the opinion of the United States Supreme Court in Brooks-Scanlon 
Co., vs Railroad Commission, 251 U. S. 396, from which we quote: 

If the plaintiff be taken to have granted to the public an 
interest in the use of the railroad it may withdraw its grant by 
discontinuing the use when the use can be kept up only at a loss. 
* * * While the decision below goes upon the ground that we have 
stated, it is thrown in at the end as a makeweight that the order 
of the Commission calls upon the plaintiff^ 'to submit a new schedule 
for transportation which may be operated at much less expense 



Decisions and Adjustments of Complaints 293 

to it than the former schedule cost, and at a profit for plaintiff.' 
This is merely the language of hope. We cannot take it to be a 
finding of fact, for we perceive nothing in the evidence that would 
warrant such a finding. 

The abandonment of a railroad which does not pay its way and has 
no reasonable prospects of future profitable operations is a matter of right, 
and a denial of this right amounts to a taking of property in violation of 
constitutional guarantees. Brooks-Scanlon Co., vs Railroad Commission, supra. 
Bullock vs. Commission, 254 U. S. 513. Railroad Commission vs. Eastern 
Texas Railroad Co., 264 U. S. 79. That a railroad is under no obligation, at 
least in so far as its charter is concerned, to operate its road at a loss is 
well established. We quote from the opinion in the case last cited at 
Page 85: 

The usual permissive charter of a railroad company does not give 
rise to any obligation on the part of the company to operate its 
road at a loss. No contract that it will do so can be elicited 
from the acceptance of the charter or putting the road in operation. 
The company, although devoting its property to the use of the 
public, does not do so irrevocably or absolutely, but on condition 
that the public shall supply sufficient traffic on a reasonable rate 
basis to yield a fair return. And if at any time it develops with 
reasonable certainty that future operation must be at a loss, the 
company may discontinue operation and get what it can out of 
the property by dismantling the road. To compel it to go on at a 
loss or give up the salvage value would be to take its property 
without just compensation which is a part of due process of law. 

A difi*erent principle applies with respect to the right to withdraw or 
abandon a part of the rights conferred and continue to enjoy other rights 
conferred by the same charter or franchise. Missouri Pacific Railroad Co. vs. 
Kansas, 216 U. S. 262. Fort Smith Traction Co. vs Bourland, 267 U. S. 330. 
But this principle does not preclude the petitioner from relief in the 
instant case for the reason that G. S. 62-47 relieves carriers from any 
contractual obligations contained in their charters of franchises to operate 
passenger trains at a loss in cases in which the convenience and necessity of 
the traveling public do not require the running of passenger trains. 

This does not mean that a railroad is entitled to a profit from every 
service it renders. Every railroad furnishes certain accommodations, conven- 
iences, and services which, when considered alone, are provided at a loss. 
It is not taking of property without compensation in violation of constitutional 
guarantees to require a railroad to provide certain services which do not 
show a profit when the entire road or system shows a reasonable profit. 
Atlantic Coast Line Railroad Co. vs. Corporation Commission, 137 N. C. 1, 
at page 15; 206 U. S. 1, at page 23. For the purpose of showing a 
profit, revenue from freight service may be considered. State vs. Georgia 
Southern & Florida Ry. Co., 190 So. 527. Atchison T. & S. F. Ry. Co. vs. 
State, 119 Pac. (2nd) 840. 



294 N. C. Utilities Commission 

The fact that the combined services of a railroad show a profit is not 
the sole and final question to be determined. Such a finding is a matter 
to be considered along with other facts in the particular case. The final 
question in cases of this kind appears to be whether the loss sustained 
from the operation of a particular train is out of proportion to the public 
interest involved. If the loss is substantial in comparison with the use 
the public makes of the service, then the fact that the system in its 
entirety may show a profit does not determine the decision to be made. 

Because of a most vigorous and sincere protest against the removal of 
the trains in question, the Commission has made a very careful search of 
the authorities and it finds few cases, if any, in which commissions have 
been sustained by the courts in requiring passenger trains to continue 
operating at a loss so great in proportion to the use made of the service. 
The following cases are in point : 

Cincinnati Northern Ry. Co. vs. Public Utilities Commission (Ohio), 
165 N. E. 38: Texas & N. O. R. Co. vs. Railroad Commission (Texas), 
200 S. W. (2nd) 626. Application Union Pacific Railroad Co. (Idaho), 
134 Pac. (2nd) \Q73. Neiv York Central R. Co. vs. Public Service Commission 
(N. Y.), 22 N. Y. vS. (2nd) 10. Union Pacific Railroad Co. vs. Public Service 
Commission (Utah), 132 Pac. (2nd) 128. Missouri-Kansas-Texas R. Co. vs. 
State (Okla.), 119 Pac. (2nd) 835. Corporation Commission vs. Southern 
Pacific Co. (Arizona). 99 Pac. (2nd) 702. 

Property rights are involved and other users of the petitioner's services 
are involved. They are required to make up the loss sustained from the 
operation of these trains and thereby pay more than the full cost of the 
particular service which they receive. In passing upon this matter, the 
Commission is required to meet the test of reasonableness. It must observe 
principles of law and do justice between the parties. 

It Is. Therefore, Ordered that the petitioner, Southern Railway Company, 
be, and it is hereby, authorized to discontinue the operation of passenger 
trains 17 and 18 between Asheville and Murphy. 

It Is Further Ordered that the authority granted in the foregoing paragraph 
will become of force and eflfect after the petitioner has posted notices at 
the stations along the route involved for a period of not less than 5 days, 
said notices to set forth the date or dates upon which the trains are to 
be discontinued. 

By Order of the Commission. 
This 8th day of July, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Stanley Winborne, Chairman, concuring: 

I have carefully read every word of the record in the instant case 



Decisions and Adjustments of Complaints 295 

with the hope that I might find something therein that would justify the 
denial of the petitioner's request to discontinue passenger train service 
between Asheville and Murphy. After careful study I can find no such 
justification. Therefore, I concur in the opinion of Commissioner Hunter 
both as to findings of fact and conclusions of law. 

Stanley Winborne, Chairman 

R. G. Johnson, Commissioner, dissenting : 

It is the view of the majority that the loss sustained from the operation 
of the trains herein considered is out of proportion to the public interest 
involved. With that view I do not agree. 

The Asheville-Murphy Branch is approximately 115 miles in length and 
is the only railroad serving the Counties of Buncombe, Haywood, Jackson, 
Graham, Cherokee, Clay and Macon with a population of more than one 
hundred thousand people. A good portion of this area is highly industrialized 
and the section enjoys a very fine tourist business. 

According to the evidence, the only passenger train serving this area 
is the one round-trip per day which the applicant proposes to discontinue. 
It has been rendering passenger service over this road for decades and 
for many years served with sufficient schedules, and enjoyed a very fine 
business without competition. The equipment being used in the operation 
of this train is old, worn out and antiquated ; the engines now being 
used were built in 1911; the passenger cars used are old and, according 
to the evidence offered, dirty and in no way compares with the modern 
equipment used on other sections of the Southern Railway System. 

When the Southern Railway entered this territory and enjoyed the franchise 
issued by the State of North Carolina then it became obligated to furnish 
what ever service was necessary for the area. It has, and is now enjoying, 
probably more freight business per mile than over any other section of 
road in like length which it serves. The largest single revenue producing 
customer of the Southern Railway System is located on this branch. The 
applicant is now using some of its most modern and best freight equipment 
over this line because of the high revenue produced. Yet, on the other hand, 
it has failed to keep step with passenger transportation and is offering 
poorer service now than it did when it had a monopoly on the transportation 
throughout this area. I am convinced that had the applicant put on sufficient 
schedules and modern equipment to take care of the demands it would now 
be enjoying sufficient passenger patronage to make it pay. There is considerable 
merit in the testimony of public witnesses that failure of the applicant to 
substitute modern equipment and convenient schedules in lieu of old facilities 
now in use has caused the applicant to lose its passenger business. The 
installation of convenient schedules and modern equipment would recapture 
passenger traffic throughout this territory. There is ample authority that 
revenue from freight service may be utilized to dissipate passenger service 
deficits. 

The number of applications to discontinue passenger service in North Carolina 



296 N. C. Utilities Commission 

by the Southern Railway System convinces me that the policy of this railroad 
is to discontinue the operation of all trains which do not pay. Yet it 
enjoyed a monopoly on passenger transportation until a few years ago when 
bus transportation was inaugurated in North Carolina. The applicant owes 
a duty to the territory which it has entered to keep abreast of the times 
and furnish proper transportation facilities. 

In the instant case the Southern Railway Company admits that the 
Aslieville-Murphy Branch is one of its best paying lines and that it is 
realizing a profit from the operation of this line as a whole. The Southern 
Railway Company further admits that its overall operations show a profit : 

"The primary duty of a public utility is to serve on reasonable 
terms all those who desire the service it renders. This duty does not 
permit it to pick and choose, and to serve only those portions 
of the territory which it finds most profitable, leaving the remainder 
to get along without the service which it alone is in position to 
give. An important purpose of State supervision is to prevent such 
discrimination." United Fuel Gas Company vs. Railroad Company 
of Kentucky, 278 U. S., 300. 

The showing of alleged losses on this passenger train is not sufiEicient to 
warrant the removal of this service. In the case of the Southern Railway Com- 
pany vs. South Carolina Public Service Commission, 31 Fed. Supp., 707, the 
Railway Company undertook to abandon all of its separate passenger trains 
on the Augusta Branch of its road. The Court, in an able and elaborate 
opinion by Judge Parker, held that the Company had no right to do so and 
that the question should be considered from the standpoint of the Company's 
operations as a whole, and that the alleged loss on the particular branch 
in question was insufficient to warrant the Court intervening. 

Quoting from State vs. Georgia Southern and F. Railway Company, 190 
Southeastern Reporter, 527 : 

"However, it is clear that the duty to furnish reasonably adequate 
train service to local communities served by such carrier is essentially 
among the imperative duties that are by law imposed upon railroad 
common carriers in consideration of the privileges conferred upon 
them by the State for the benefit of the public." 

"The Franchise and privileges granted by the State of Florida 
to the appellee company, as stated above, were in consideration of 
the construction, maintenance and operation as required by the laws 
of the State of Florida on the line of railroad from the Georgia State 
line Southeast to Palatka in the State of Florida, for the benefit pri- 
marily of the communities through which the line of railroad extends, 
and the minimum train service on such line required by the laws 
of Florida should not be further reduced in violation of the duly 
promulgated orders of the Florida Railroad Commission, at least 
unless it be clearly shown by a complete exposition of all the revenue 
receipts from such line and other proper expenditures in operating 
such line, and the effect thereof on the revenues of the entire 



Decisions and Adjustments of Complaints 297 

system of the Company's line ; that an enforced continuance of the 
present minimum statutory train operations on such Hne will inevitably 
and unlawfully deny organic property rights of the railroad company." 

"Where a line of a common carrier railroad company system 
enters interstate as well as intrastate passenger and freight service 
and permission is sought to reduce the number of daily trains operated 
on the line because of the diminished revenue receipts earned by 
such line, the reasonable needs of the public are to be first considered, 
and all the revenue receipts, interstate and intrastate, as well as 
mail, express and all other sources of revenue duly accruing to 
the line should be considered in determining not whether the line 
is self-sustaining but whether the financial burden of the line grossly 
exceeds the needs of the public to a continuance of the service 
and so reduced the revenue receipts of the company's entire system 
to be a deprivation or taking of property of the company without 
due process and without just compensation, or so as to unduly burden 
the interstate commerce system of the company." 

"Even though such service be an uncompensated financial burden 
to the carrier, yet such duty to provide and maintain appropriate 
train service to meet the public needs must be performed even 
though total costs exceed the receipts from rendering the particular, 
service when the burden of such latter service does not unduly impair 
the total revenue receipts of the carrier from all sources on its 
entire system." 

"Railroad was enjoined from decreasing present train service where 
evidence failed to establish that enforced continuance of minimum 
statutory train operations would inevitably and unlawfully deny 
organic property rights of the railroad." 

Quoting from Corporation Commission vs, Atlantic Coast Line Railroad 
Company, 137 North Carolina Reports, Page 31 : 

"It is not necessary that the particular service required shall be 
profitable if the total earnings in this State show a profit. It is 
precisely because some particular service which the public comfort 
or convenience may require is not profitable that the company declines 
to render it. It prefers to work the soft spots, the best-paying ore, 
and it is precisely, for that reason that the Commission is invested 
with the power to require those things done if reasonable and just, 
to which there is the protection of appeal to the Superior Court and 
a further review here." 

R. G. Johnson, Commissioner 

Docket No. 3999 



298 N. C. Utilities Commission 

BEFORE THE NORTH CAROLINA UTILITIES COMMISSION 

In the Matter of 

PETITION OF SOUTHERN RAILWAY COMPANY FOR AUTHORITY 

TO DISCONTINUE PASSENGER TRAINS 17 AND 18 OPERATING 

BETWEEN ASHEVILLE AND MURPHY. 

Order Overruling Exceptions 

This matter now comes before the Commission upon exceptions and 
assignment of error, as appear of record, made by the Chamber of 
Commerce of Waynesville— Hazelwood-Lake Junaluska to the findings of 
fact and conclusions made by the Commission in this cause, dated July 8, 
1948. said exceptions and assignments of error being dated July 17. 1948, 
and received by the Commission on Monday, July 19, 1948. 

Said exceptions and each of them have been carefully considered by the 
Commission and found to be without sufficient merit to warrant any change 
or modification in the decision made by the Commission in this cause. 
Said exceptions and each of them are therefore overruled. 

Issued by Order of the Commission. 

This 22nd day of July, 1948. 

NORTH CAROLINA UTILITIES COMMISSION 
Chas. Z. Flack, Chief Clerk 

Docket No. 3999 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 
AUTHORITY TO SUBSTITUTE MIXED TRAIN SERVICE FOR 
REGULAR PASSENGER TRAIN SERVICE NOW PERFORMED BY 
TRAINS NO. 35 AND 36, BETWEEN MARION, N. C. AND THE 
N. C.-S. C. STATE LINE. 

Order 

Appearances : 

Charles Clark and W. T. Joyner for applicant. 

Woodrow W. Jones. Fred Williams, Charles C. Dalton. Lee E. 
Weathers, W. E. Sweatt, W. M. Ficklen, R. L. Nichols, Clarence 
Griffin, C. Y. Nanney, Jr., J. L. Haney and A. F. Hunt for 
protestants. 

Upon the posting of notices at stations to be affected, as required by 
our rules, several protests were received against the action contemplated 
by the Southern Railway Company as shown in its application for authority 
to substitute mixed train service for regular passenger train service to and 
from Marion, N. C. and the N. C.-S. C. state line. The matter was heard 
and in justification of the substitution proposed; the appHcant relies upon 
evidence in summary as follows: the present service on passenger train No. 



Decisions and Adjustments of CotviPLAiNTS 299 

35 departs Marion at 4:15 p. m. and arrives at Earl, N. C. near the S. C. 
line at 6:41 p. m. From that point the train passes on into Blacksburg, 
S. C. thence terminating at Rock Hill, S. C. The reverse schedule departs 
Earl, N. C. at 10:05 a. m. arriving Marion at 12:30 p. m., a distance of 
62 miles between Marion and Earl. Only 1 passenger coach is now utilized 
in each train. It has separate accommodations for white and colored passengers. 
These passenger trains now carry some freight cars from time to time. 
The proposed schedule is to leave Marion at 8 :00 a, m., arriving Rock 
Hill at 3:30 p. m., leaving Rock Hill at 6:00 a. m., arriving at Marion 
at 11:30 a. m. The proposed change if effected will not displace any existing 
employees. 

Not excluding the revenue from freight cars handled on trains 35 and 36 
for a period of eight months ending with August 31, 1947, the direct 
expense in excess of revenue for that period was $39,958.46. The average 
number of passengers per train was 39.36 while at the same time the average 
number of passengers per train for all Southern Railway trains including 
Numbers 35 and 36 was 91.88. The revenue from passengers on 35 and 36 
per train mile was 15.74 cents and from the system it was 200.9 cents. 
The ratio of expenses to revenue beginning with 1944 indicates an upward 
trend which trend an expert witness testified would continue and that 
in 1947 the ratio for the system would be more than 100, that is, to 
earn a dollar would require the expenditure of more than a dollar. The 
applicant also shows bus and other service available at points intermediate 
to Marion and Earl, such as Garin, Glenwood, Vein Mountain, Thermal City, 
Union Mills, Gilkey, Rutherfordton, Spindale, Forest City, Ellenboro, Moores- 
boro, Latimore, Washburn, Shelby and Patterson Springs, Nine of these 
points are non-agency stations. Only 2 of the agency stations exceed five- 
thousand population. 

The protestants are earnest men deeply concerned with the interest of 
their respective communities. Their zeal as displayed on cross-examination of 
applicant's witnesses is indicative of a strong desire to retain the service as 
it now operates. They particularly attack one of the substantial items of 
expense, viz., locomotive repair. They point out that the amount of expense 
assigned to this item is based on a system average. However, this method 
constitutes the best available evidence on that point and it is a method 
which has been accepted by adverse parties in other proceedings. In any 
event if the whole item of locomotive repair were to be eliminated, a 
substantial deficit would still remain. The trains here under consideration, 
Nos. 35 and 36 were instituted prior to the present era of modern highways 
with the attendant expansion of motor vehicular transportation, and while 
we are reluctant to authorize the reduction of a convenience in any section 
we must face our duty of protecting the interests of the state as a whole. 
The applicant is not here seeking to abolish the service but merely to reduce 
its class for the purpose of minimizing losses which are now being made 
up in part by other areas where the passenger service has been eliminated 
altogether. In addition to complete discontinuance of passenger trains over 
applicant's rails, other carriers such as the Norfolk Southern Railway 
extending for a distance of 400 miles between Charlotte and Norfolk, Va., 



300 N: C. Utilities Commission 

have no passenger service through such towns as Norwood, Star, Raleigh, 
Wilson, Greenville, Elizabeth City, etc. 

The record in this proceeding contains a statement on behalf of applicant 
that unless the losses from operating these trains are minimized the alternative 
would be to move before the Interstate Commerce Commission for authority 
to abandon the line of road. We shall not decide this matter on the basis 
of that statement. The real question to be determined is whether the losses 
incurred under present operation of these trains is out of proportion to the 
needs of and patronage by the local public. We are of the opinion and 
find that the substituted service as proposed will in all the circumstances 
constitute a proper discharge by the applicant of its relative duty to serve 
the territory, and so finding; 

It Is Ordered, That the application herein of the Southern Railway Company 
to substitute mixed train service for regular passenger train service now 
performed by trains number 35 and 36 between Marion, N. C. and the 
N. C.-S. C. state line be and the same is hereby granted and approved. 



By Order of the Commission. 
This 29th day of October, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Docket No. 4116 ,f^ 

APPLICATION OF THE SOUTHERN RAILWAY COMPANY FOR 

AUTHORITY TO CHANGE THE SCHEDULES OF ITS PASSENGER 

TRAINS NUMBERS 14, 21 AND 112 OPERATING BETWEEN 

GREENSBORO AND GOLDSBORO, NORTH CAROLINA. 



Order 

By application filed April 16, 1948, the Southern Railway Company seeks 
authority to make the following changes in the schedules of its passenger 
trains 14, 21 and 112 which operate between Greensboro and Goldsboro, 
North Carolina : 

No. 14: Present Schedule Proposed Schedule 

Lv. Greensboro 6:30 A. M. 5:55 A. M. 

Ar. Raleigh 9:15 A. M. 8:40 A. M. 

Lv. Raleigh 9:25 A. M. 9:00 A. M. 

Ar. Goldsboro 11:00 A. M. 10:45 A. M. 

No. 112: 

Lv. Greensboro 12:01 A. M. 1:20 A. M. 

Ar. Raleigh 2 :40 A. M. 3 :S5 A. M. 

Lv. Raleigh 2:50 A. M. 4:20 A. M. 

Ar. Goldsboro 5:00 A. M. 6:00 A. M. 



Decisions and Adjustments of Complaints 301 

No. 21: 

Lv. Goldsboro 5:20 A.M. 5:00 A.M. 

Ar. Raleigh 6:42 A. M. 6:18 A. M. 

Lv. Raleigh 7:05 A. M. 6:40 A. M. 

Durham 7:55 A. M. 7:35 A. M. 

Ar. Greensboro 9:55 A. M. 9:25 A. M. 

Affidavit attached to the application indicates compliance with the ten-days'- 
notice requirement of Practice Rule 13. 

Applicant posted notices at stations along its line between Greensboro 
and Goldsboro on February 10, 1948, containing a declaration of intent to 
file application with the Commission for authority to discontinue stopping 
eastbound passenger train number 14 at McLeansville, Gibsonville, Elon College, 
Graham, Haw River, Mebane, Efland, Hillsboro, Glenn, Morrisville and Gary, 
and to make specified changes in the schedules of trains 14 and 112, the 
latter is also an eastbound train. 

On February 16, 1948 a similar notice was posted with respect to westbound 
trains 13 and 111. Numerous expressions of opposition to the proposed changes 
were received by the Commission. However, before the announced application 
was filed the Southern Railway decided to abandon the proposal and to file 
the application here considered. No expressions of protest to the application 
have been received by the Commission. To the contrary, letters were received 
from the Minneola Manufacturing Company and Engineered Plastics Incorpo- 
rated, both of Gibsonville in which they indicated that they did not object to the 
changes proposed in the application. 

In view of the minor character of the proposed changes, the apparent 
over-all improvement in service and absence of protest, the Commission has 
concluded that there will result improved convenience to the public. 
Therefore, 

It Is Ordered, That the application herein be, and same is hereby, approved. 

By Order of the Commission. 

This 23rd day of April, 1948. . 

Chas. Z. Flack, Chief Clerk 

Docket No. 4382 

PETITION OF THE SOUTHERN RAILWAY COMPANY FOR RELIEF 

FROM THE REQUIREMENTS OF CIRCULAR NO. 261, WITH 

RESPECT TO SWITCHING CHARGES AT HIGH POINT AND 

THOMASVILLE, NORTH CAROLINA. 

Order 

By petition filed December 26, 1946, Southern Railway Company, for its 
own account and for account of the High Point, Thomasville and Denton 
Railroad Company, seeks relief from the terms of Circular No. 261, in order 
to permit publication of the following provisions in its Switching and Absorption 



302 N. C. Utilities Commission 

Tariff No. 13, NCUC No. 104, supplements thereto or reissues thereof: 

Item No. 9050: (Applicable at High Point) 

The Southern Railway Company or the High Point, Randleman, Asheboro 
and Southern Railroad Company will switch carload traffic to or from 
the point of interchange with the High Point, Thomasville and Denton 
Railroad Company from or to the industries named in Items Nos. 
9055 to 9425, inclusive, at the following charges: 

600 cents per car when all or any portion of the switching 
charge is absorbed by the High Point, Thomasville and Denton 
Railroad Company, and 248 cents per car when the switching 
charge is paid by the consignor or consignee. 

Item No. 15455: (Applicable at Thomasville) 

The Southern Railway Company will switch carload traffic to or 
from the point or interchange with the High Point, Thomasville and 
Denton Railroad Company from or to the industries named in Item 
Nos. 15460 to 15535, inclusive, when originating at all stations except 
points in Groups 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 
16, 17, 18, 19, 20, 21, 22, 2^o, 24, 25, 26, 27, 28, 29, 30, 31, 2>Z, 
ZZ, 36, 40, 41, 43, 46, 48, 49, 50, and 51, or on carload traffic 
destined to all stations except points in Groups 1, 2, 3, 4, 5, 6, 7, 8, 
9, 10, 11, 12, 13, 14, 15. 16, 17, 18, 19, 20, 21, 22, 2Z, 24, 25, 26, 
27, 28, 29, 30, 31, Z2, ZZ, 36, 39, 40. 41. 43, 46, 48. 49, 50 and 51. 
at the following charges: 

600 cents per car when all or any portion of the switching 
charge is absorbed by the High Point, Thomasville and Denton 
Railroad Company, and 248 cents per car when the switching charge 
is paid by the consignor or consignee. 

Relief also is sought to permit the High Point, Thomasville and Denton 
Railroad Company to make a similar publication in its tariff applicable at 
High Point and Thomasville, 

The aforementioned charges are to be subject to the general increases 
published effective January 1. 1947 under authority of the order in Docket 
No. 3609. 

"The amendment to Item 9050. applicable at High Point, will result 
in a reduction in the present" charge when absorbed by the connecting 
line and no change when the switching charge is paid by the consignor 
or the consignee. 

The change in Item 15455, applicable at Thomasville. will result 
in an increase when the switching charge is absorbed by the connecting 
line but no change when the switching charge is paid by the consignor 
or the consignee. 

Investigation has shown that the present switching charge at 
Thomasville, N. C, does not cover the actual cost of rendering the 



Decisions and Adjustments of Complaints 303 

service and, in the interest of uniformity, we have adopted a charge 
of $6.00 per car appHcable at both High Point and Thomasville for 
appHcation on traffic where the switching charge is absorbed by the 
road-haul carrier. As indicated above, no change is being made in 
the switching charge when paid by the shipper or the consignee." 

The switching rates involved are described in Circular No. 261, as "Inter- 
change Switching". The maximum charge prescribed in said circular, as amended, 
is $2.48, subject to the general increase effective January 1, 1947. 

Copies of the petition were submitted to interested shippers and shipper 
organizations for expressions of views. But in the replies received, shippers 
and their organizations stated that they had no views to express in the matter. 

Upon consideration of the facts presented, the Commission has concluded 
that the petition herein should be approved. Accordingly, 

It Is Ordered, That the petition herein be, and same is hereby approved. 

By Order of the Commission. 
This 25th day of February, 1947. 

Charles Z. Flack, Chief Clerk 

Docket No. 196 

Atlantic Coast Line Railroad Company to the Commission. Cancellation of 

pick-up and delivery service at Aurora, Battleboro, Bethel, Black Creek, 

Everett, Grifton, Halifax, Jamesville, Kenly, Lucama, Nashville, Pikeville, 

Spring Hope, Stedman, Vandemere and Winterville. Tariffs filed. Docket 

No. 4385. 

Atlantic Coast Line Railroad Company to the Commission. Application for 
authority to abandon and dismantle covered platform at Wrightsville. With- 
drawn. Docket No. 2512. 

Atlantic Coast Line Railroad Company to the Commission. Application for 
authority to abandon track 244 at Brick. Withdrawn. Docket No. 3867. 

Atlantic Coast Line Railroad Company to the Commission. Replacing station 
building at Hope Mills, same having been destroyed by fire. Plans approved. 
Docket No. 4358. 

Seaboard Air Line Rai-lroad Company to the Commission. Plans for repairing 
and modernizing passenger station at Southern Pines. Approved. Docket 
No. 4400. 

Seaboard Air Line Railroad Company to the Commission. Application for 
authority to make Waco flag stop for trains Nos. 19 and 20. Withdrawn. 
Docket No. 3873. 

Seaboard Air Line Railroad Company to the Commission. Inauguration of 
streamliner between Birmingham and New York, and discontinue trains 
Nos. 11 and 12 and take over local work of trains Nos. 17 and 18. 
Approved. Docket No. 3842. 



304 



N. C. Utilities Commission 



Seaboard Air Line Railroad Company to the Commission. Application for 

authority to make change in passenger train service from Hamlet to 

Jacksonville, Fla. Approved. Docket No. 4460. 
Southern Railway Company to the Commission. Closing of agency at Glenwood. 

Agency re-opened. Docket No. 3929. 
Southern Railway Company to the Commission. Application to close agency 

at Rutherfordton temporarily on account of illness of Agent. Granted. 

Agency re-opened. Docket No. 4306. 

APPLICATIONS TO INTERSTATE COMMERCE COMMISSION FOR 

CERTIFICATE OF CONVENIENCE AND NECESSITY TO 

CONSTRUCT AND ABANDON LINES OF RAILROAD 

Atlantic and Carolina Railroad Company. Application for certificate of conven- 
ience and necessity permitting abandonment of its entire line from Warsaw 
to Kenansville in Duplin County. Order permitting abandonment. (ICC 
15945) Docket No. 4271. 

Moore Central Railroad Company. Application for certificate of convenience 
and necessity permitting abandonment of its entire line from Carthage 
to Cameron in Moore County. Order permitting abandonment. (ICC 15726) 
Docket No. 4032. 

Virginia and Carolina Southern Railroad Company. Application for certificate 
of convenience and necessity authorizing construction and operation of an 
extension within Robeson County. Order authorizing construction. (ICC 
16028) Docket No. 4333. 

MOTOR VEHICLE CARRIERS 

Passenger 



R. T. Abbott, Lessee, 
Smoky Mountain Stages, 
Box 343, 
Bryson City, N. C. 

Arden Stage Co, 
31 Panola St., 
Asheville, N. C. 

Asheboro Coach Co., 
Asheboro, N. C. 

Asheville-Bingham Heights 

Bus Line, 

Gene Burleson, t/a 

15 Jackson Drive, 

Asheville, N. C 

Asheville-Elk Mountain Bus Line, 
Asheville, N. C. 

Nicholas Atamanchuk, 
Plymouth, N. C. 

Atlantic Greyhound Corporation, 
Charleston, W. Virginia 



Robert Ballard. 

Route No, 3, 

W. Asheville, N. C. 

Beatty's Ford Bus Co., Inc- 

1408 Trade St., 

Charlotte, N. C. 

Beech-Asheville Bus Line, 

V. V. Holcombe, d/b/a 

Weaverville, N. C. 

Brevard Bus Co., 

L. D. Martin, d/b/a 

Brevard, N, C, 

Jack Bryson, 

8 London Road, 

Asheville, N, C. 

Burke Transit Co,, 

Morganton, N. C. 

Carolina Coach Co., 

Raleigh, N. C. 

Carolina Coach Company of Virginia 

Raleigh, N, C. 



Decisions and Adjustments of Complaints 



305 



Carolina Scenic Stages, 
Spartanburg, S. C. 

Central Bus Co., Inc., 
Lincolnton, N. C. 

City Bus Co., 

T. Ralph Young, t/a 

Hendersonville, N. C. 

City Bus Lines, Inc., 
Hickory, N. C. 

City Bus Service, 
Washington, N. C. 

City Coach Co., 
Gastonia, N. C. 
City Rapid Transit Co., 
Fayetteville, N. C. 
City Transit Co., 
High Point, N. C. 
City Transit Co., 
Elkin, N. C. 

Colonial Bus Lines, 

Box 448, 

Rocky Mount, N. C. 

Conover-Newton Bus Line, 

Newton, N. C. 

Dillingham Brothers, 

Barnardsville, N. C. 

Dixie Bus Line, 

W. A. Clark, d/b/a 

Matthews, N. C. 

Luther V. Dixon, 

Box 592, 

Roxboro. N. C. 

Durham-Dunn Bus Co., 

Fuquay Springs, N. C. 

Elizabeth City Bus Lines, 

Elizabeth City, N. C. 

Engelhard-Washington Bus Co. 

Engelhard, N. C. 

F & H Bus Co., 

C A. Fesperman, d/b/a 

Lessee of Carolina Coach Co., 

Rockwell, N. C. 

Joe E. Fowler, Lessee, 

Smoky Mountain Stages, 

Sylva, N, C. 



French Broad Bus Line, 
F. O. Edwards, d/b/a 
Weaverville, N. C. 

Gabriel Bus Co., 

M. A. Gabriel, d/b/a 

Mooresville, N. C. 

Gastonia Transit Co., 
Gastonia, N. C. 

Gate City Transit Lines, 
108 N. Davis St., 
Greensboro, N. C. 

Goldsboro Transportation Co. 
Goldsboro, N. C. 

Greenville-Brevard Bus Line, 
Edwin C. King, 
Route No. 2, 
Greenville, S. C. 

J. H. Hammock, 

Gasburg, Va. 

Hastings Bus Line, 

T. S. Hastings, d/b/a 

Durham, N. C. 

Henderson Bus Line. Inc.. 

Henderson, N. C. 

Jackson Coimty Transit Co., 

Sylva. N. C. 

Lawndale Bus Co., 

Lawndale. N. C. 

William R. Ledbetter, 

Skyland. N. C. 

Leicester Bus Line, 

Glen Ray, d/b/a 

7 Redfern St.. 

Asheville, N. C. 

Lenoir Motor Coach Co., 

Lenoir, N. C. 

Lincolnton Bus Co., 

Asheville, N. C. 

Lumberton Coach Co., Inc., 

Lumberton, N. C. 

M &■ B Transit Lines, Inc., 

214 E. Front St., 

Burlington, N. C. 

Nathan McKinney, 

Mt. Airy, N. C. 



306 



N. C. Utilities Commission 



Manteo-Hatteras Bus Line, 
Mrs. Ersie Midgett, d/b/a 
Hatteras. N. C. 

Mars Hill-Weaverville Bus Line Inc. 
Weaverville, N. C. 

Chas. I. Miller. 
Cana, N. C. 

Montford's Cove Bus Line, 
Marion, N. C. 

Mt. Airy Transportation Co.. 
Mt. Airy, N. C. 

Murphy- Franklin Bus Line, 
Cline E. McClure, d/b/a-Lessee 
Smoky Mountain Stages, 
Hayesville, N. C. 

Neal Gap Bus Line, Inc., 
Dublin, N. C. 

Norfolk Southern Bus Corp., 
Norfolk, Virginia 

Orchard Gap Bus Line, 
Tommie Nixon, d/b/a 
Mt. Airy, N. C. 

Oteen Bus Company, 
98 Patton Ave., 
Asheville, N. C. 

Parkway Bus Co., Inc., 
N. Wilkesboro. N. C. 

Parkway Tours, 
Waynesville, N. C. 

Piedmont Bus Lines, 
2518 Greenland Ave., 
Charlotte, N. C. 
Porter Bus Line, 
Ahoskie, N. C. 
Pullen Bus Line, 
C. T. Pullen, d/b/a 
Burgaw, N, C. 
Queen City Coach Co., 
Charlotte, N. C. 
Reams Bus Line, 
Clarksville, Va. 

Ricks Tours and/or 
Ricks Bus Line, 
Greenville, N. C. 



Roanoke Transit Co., 
99 Roanoke Ave., 
Roanoke Rapids, N. C. 

Rockingham- Suburban Bus Line, 
Asheboro, N. C. 

Rowan-Cabarrus Bus Line, Inc., 
Kannapolis, N. C. 

Rutherford County Transit Co., 
Rutherfordton, N. C. 

Safeway Suburban Lines, 
Dunn, N. C. 

Safeway Suburban Lines, 

Sanford, N. C. 

Safeway Transit Co., 

Wilmington, N. C. 

Seashore Transportation Co., 

New Bern, N. C. 

Sharon Coach Co., 

Route No. 1-Box 42, 

Charlotte, N. C. 

Shelby Transit Co., 

Shelby, N. C. 

Silver Fox Lines, 

Roxboro, N. C. 

W. W. Smith, 

Whitnel, N. C. 

Smuky Mountain Stages, Inc., 

Asheville, N. C. 

Smoky Mountain Tours Co., 

Box 1652, 

Asheville, N. C. 

Mrs. J. W. Snow, 

432 Fairview Road, 

Biltmore, N. C. 

Statesville Motor Coach Co., 

Statesville, N. C. 

Melvin Styron, 

Atlantic, N. C. 

Suburban Bus Line, 

H. F. Moore, t/a 

Route No. 2, 

High Point, N. C. 

Suburban Transit Lines, Inc., 
Box 599, 
Winston-Salem, N. C. 



Decisions and Adjustments of Complaints 307 

Swannanoa-Grovemont Bus Service Virginia Stage Lines, Inc., 

Swannanoa, N. C. Charlottesville, Virginia 

T & H Bus Line, ^^ B_ ^ 3 B^3 Lines, 

Jack Cornelison, Southport. N. C. 

Route No. 1, 
Thomasville, N. C. Wallace Bus Co, 

rj. . , ^ , ^ Wallace, N. C. 

Triangle Coach Co., 

J. E. Riggins, d/b/a A. A. White, 

Southern Pines, N. C. Bladenboro, N. C. 

Tri-City Transportation Co., White Transportation Co, Inc, 

Leaksville, N. C. Asheville, N. C. 

Twin City Lines, Wilkes Transportation Co, Inc, 

Winston-Salem, N. C. North Wilkesboro, N. C. 

Virginia Dare Transportation Co, Inc., Yancey Bus Co., " 

Manteo, N. C Burnsville, N. C. 

JOINT APPLICATION OF PASSENGER BUS LINES OPERATING 

WITHIN THE STATE OF NORTH CAROLINA FOR FURTHER 
GENERAL MODIFICATION OF THE ORIGINAL ORDER HEREIN. 

Second General Modifying Order 
By petition filed November 5, 1948 as amended the Carolina Coach Company, 
Carolina Coach Company of Virginia, Atlantic Greyhound Corporation, Queen 
City Coach Company, Greensboro-Fayetteville Bus Lines, Inc., Norfolk Southern 
Bus Company, Seashore Transportation Company, the National Bus Traffic 
Association, Inc, for and on behalf of issuing carriers in its Tariffs numbers 
100 and 350, N. C. U. C. Numbers 4 and 23, respectively and Durham-Dunn 
Bus Company, Jackson County Transit Company, Sanford Bus Lines, Beech- 
Asheville Bus Line, Conover-Newton Bus Line, Oteen Bus Company, Suburban 
Bus Lines and Burke Transit Company, Inc. represented by North Carolina 
Motor Carriers Association, Inc. for further general modification of the 
original order herein dated January 31, 1942, as subsequently amended, to 
the extent necessary to permit maintenance of fares except as to minimum 
fares for short distances, which do not exceed 2j^ cents per mile. 

Recently petitioners have been engaged in revising their fares, both interstate 
and intrastate, in North Carolina and adjacent States and between those 
States, which revision became necessary on account of increased operating 
costs, accompanied by a decline jn the volume of passenger traffic handled, 
and a resulting reduction in net operating revenue. For these reasons it 
has been necessary for them from time to time, to seek relief from the 
maximum fare provisions of the original order herein dated January 31, 1942. 
Petitioners are now seeking general relief in order that the remainder of 
the revision may be carried to completion without the necessity of filing 
petitions for specific relief as each proposed piecemeal adjustment is prepared. 

Upon consideration of the petition herein and the grounds thereof, the 
Commission has concluded that the maximum of two (2) cents per mile, 
except as to minimum fares for short distances, prescribed in the order 
herein effective January 31, 1942 is no longer serving the original purpose for 
which established, and will order that portion of the order amended. However, 



308 N. C. Utilities Commission 

nothing herein should be construed as constituting affirmative approval of 
any fares or level of fares or waiver of procedure under G. S. 62-125 
(suspension of proposed tariff changes). Nor does it, in any way, affect the 
Commission's Rule 16 governing Motor Vehicle Carriers, with respect to 
fares for children. 

It Is Ordered, That those provisions of the order of January 31, 1942, 
herein requiring that fares not exceed the maximum of two (2) cents per 
mile, except as to minimum fares for short distances be, and same are hereby, 
amended to provide that fares for travel on passenger motor vehicles operated 
by all certificated Bus lines within the State of North Carolina except 
minimum fares for short distances, shall not exceed 2^^ cents per mile. 

It Is Further Ordered, That an affidavit be filed with the Commission 
3 days prior to the effective dates of tariffs containing proposed increases, 
showing that a legible notice announcing the proposal to increase a fare or 
fares, has remained posted in a conspicuous place at stations typical of 
those affected, for a period of 5 days, or if no station service is provided, that 
said notice has remained posted in a conspicuous place in buses transporting 
passengers between points where increases are proposed, for a period of 
5 days in accord with the following form and substance: 

Notice 
"Notice is hereby given that the 



(name of bus line) 

proposes to increase certain of its fares effective 

Typical of the increases are: 

From To Present Proposed 

Fares 



It Is Further Ordered, That the order herein of January 31, 1942 as 
amended, shall, in all other respects, remain in full force and effect. 

By Order of the Commission. 
This 15th day of November, 1948. 

Charles Z. Flack, Chief Clerk 

Docket No. 2516 



Decisions and Adjustments of Complaints 309 

PETITION OF APPROVAL OF SALE AND TRANSFER BY A & C 
BUS LINES, INC., TO CITY COACH COMPANY OF CERTAIN 
EQUIPMENT AND FRANCHISE RIGHTS BETWEEN MOUNT HOLLY 

AND BELMONT. 

Order 

A joint petition dated January 15, 1947, was filed with the Commission 
by A & C Bus Lines, Inc., as vendor, and City Coach Company, as 
vendee, from which it appears that said parties entered into an agreement 
under date of January 14, 1947, for approval of a sale and transfer by the 
said vendor to the said vendee of one 1940 Beaver passenger bus and 
certain operating rights which were granted to the said vendor on January 
3, 1944, in Docket No. 3001, said operating rights being described as follows: 

(1) From Mount Holly to Belmont over old and new State 
Highway No. 273, and 

(2) From Belmont to Mount Holly via Perfection Mill Road 
by Perfection Mill and Acme Mill. 

It appears from the petition and from the records of the Commission 
that both vendor and vendee now have operating rights over the identical 
routes above described, which has occasioned some confusion and dissatisfaction 
between said carriers, particularly in arranging their respective schedules; 
and the Commission is of the opinion that the public will be better served 
by the operation of one carrier over said routes and between said points. 
It also appears that City Coach Company has been operating in that area 
for many years and is well qualified to perform the service in a satisfactory 
manner. The purchase price agreed upon between said parties is $3,500 cash. 

It Is, Therefore, Ordered: 

(1) That said petition be, and the same is hereby, approved. 

(2) That the franchise certificate of A & C Bus Lines, Inc., be amended 
by striking therefrom the routes hereinbefore described and that the franchise 
certificate of City Coach Company be amended by adding thereto said rights. 

(3) That this order shall not become effective until the City Coach 
Company shall have filed with the Commission the schedules it proposes 
to operate over said routes and notice in writing to the eflfect that said 
transfer has been consummated. 



This 28th day of January, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No, 3885 



North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 



310 N. C. Utilities Commission 

FRANCHISE CERTIFICATE NO. 518 IN THE NAME OF A & C 
BUS LINES, INC., R. F. D. 7, CHARLOTTE, NORTH CAROLINA. 

Order Cancelling Certificate 

The Commission is in receipt of letter dated December 9, 1947, from Hugh 
M. McAulay, Attorney at Law, Charlotte, N. C, enclosing Certificate No. 
518, together with the rights and amendments attached thereto, requesting 
the voluntary surrender of said franchise. That the A & C Bus Lines, Inc., 
ceased to operate over said Hues on or about the 28th day of November, 1947. 

It Is Ordered That the said applicant, A & C Bus Lines, Inc., be, and 
it is hereby, granted permission to surrender its franchise. 
This the 29th day of December, 1947. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4267 

APPLICATION OF ABINGDON-WILKESBORO MOTOR LINES, INC, 

FROM N. C. STATE LINE NEAR NELLA, N. C, AND PROCEED 

OVER ROUTES 162 AND 16 TO WILKESBORO, N. C. 

Order 

The Commission is in receipt of letter from W. A. Willeroy, Attorney 
for the Abingdon-Wilkesboro Motor Lines, Inc., requesting dismissal of the 
appHcation on the ground that the Interstate Commerce Commission refuses 
to grant the permit previously applied for on the ground that "public 
convenience and necessity do not require it". 

It Is, Therefore, Ordered that the application be dismissed. 

By Order of the Commission. 

This the 6th day of November, 1947. 

R. G, Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4014 

APPLICATION OF AIRPORT LIMOUSINE, INC., OF CHARLOTTE, 

NORTH CAROLINA. 

Order 
The applicant in the above case has withdrawn its application and the 
case is accordingly ordered dismissed. 
By Order of the Commission. 
This 28th day of December, 1946. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 
ATTEST : 

Chas. Z. Flack, Chief Clerk 
Docket No. 3683 



Decisions and x^djustments of Complaints 311 

APPLICATION OF ALEXANDER-ASHEVILLE BUS LINE FOR 
AUTHORITY TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS FROM ASHEVILLE OVER N. C. HIGHWAY 63 AND 
N. C HIGHWAY 191 TO ELECTRIC POWER WATER PLANT BELOW 
ELK MOUNTAIN. WITH CLOSED DOORS; THENCE OVER HIGH- 
WAY 191 TO THE INTERSECTION OF HIGHWAYS 25 AND 70; 
THENCE WITH CLOSED DOORS OVER HIGHWAYS 25 AND 70 
A DISTANCE OF 5 MILES TO ALEXANDER; THENCE OVER 
FLETCHER MARTIN ROAD (UNNUMBERED) 2^ MILES TO 
CARTER'S STORE; THENCE OVER OLD N. C. HIGHWAY 20 ONE 
MILE TO SULPHUR SPRINGS; THENCE OVER OLD HIGHWAY 
20 FOUR MILES TO ZEB JARRETT'S WOODS; THENCE OVER 
TURKEY CREEK ROAD ONE MILE TO TURKEY CREEK CHURCH; 
THENCE OVER BEAR CREEK ROAD FOUR MILES TO ITS 
INTERSECTION WITH THE LEICESTER ROAD; THENCE CONTIN- 
UING WITH BEAR CREEK ROAD TWO MILES TO ROBERTS 
STORE; THENCE RETRACING SAID TWO MILES TO SAID INTER- 
SECTION WITH THE LEICESTER ROAD; THENCE ONE MILE 
OVER THE LEICESTER ROAD TO ITS INTERSECTION WITH 
RIDGEVIEW ROAD; THENCE OVER RIDGEVIEW ROAD 300 YARDS 
TO H. PARHAM'S STORE; THENCE OVER RIDGEVIEW ROAD ONE 
MILE TO ITS INTERSECTION WITH OLD N. C. HIGHWAY 20; 
THENCE WITH SAID N. C. HIGHWAY 20 TWO MILES TO CARTER'S 
STORE; AND RETURN TO ASHEVILLE. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant; 

George M. Pritchard, Attorney, AsheviUe. N. C. 

For Protestants: 

Sam M. Cathey. Attorney, Asheville, N. C, for 
F. O. Edwards, d/b/a French Broad Bus Line. 
Johnson. Commissioner: 

This cause was set for hearing and heard at the Langren Hotel in 
Asheville. N. C, on the 12th day of August. 1947. 

Affidavit of Publication of Notice was duly filed. Convenience and necessity 
having been shown ; y 

It Is, Therefore. Ordered, That the application in this docket be, and the 
same is hereby, granted; that when the applicant has complied with the 
rules and regulations of the Commission franchise certificate be issued to 
Alexander-Asheville Bus Line as follows: 

To operate as motor vehicle carrier of passengers from Asheville over N. C. 
Highway 63 and N. C. Highway 191 to Electric Power Water Plant below 
Elk Mountain, with closed doors; thence over Highway 191 to the intersection 
of Highways 25 and 70; thence with closed doors over Highways 25 and 70 



312 N. C. Utilities Commission 

a distance of five miles to Alexander ; thence over Fletcher Martin Road 
(unnumbered) two and one-half miles to Carter's Store; thence over Old 
N. C. Highway 20 one mile to Sulphur Springs; thence over Old Highway 
20 four miles to Zeb Jarrett's Woods; thence over Turkey Creek Road 
one mile to Turkey Creek Church ; thence over Bear Creek Road four 
miles to its intersection with the Leicester Road ; thence continuing with 
Bear Creek Road two miles to Robert's Store; thence retracing said two 
miles to said intersection with the Leicester Road; thence one mile over the 
Leicester Road to its intersection with Ridgeview Road; thence over Ridgeview 
Road 300 yards to H. Parham's Store ; thence over Ridgeview Road one 
mile to its intersection with Old N. C. Highway 20 ; thence with said N. C. 
Highway 20 two miles to Carter's Store ; and return to Asheville. 

This 28th day of November, 1947. 

Stanlp:y Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack. Chief Clerk 

Docket No. 4105 

BEFORE THE NORTH CAROLINA UTILITIES COMMISSION 

In The Matter Of 

PETITION FOR APPROVAL OF SALE AND TRANSFER OF 

OPERATING RIGHTS UNDER ORDER ENTERED NOVEMBER 28, 

1947, DOCKET NO. 4105, BY WADE SHELTON AND LEWIN MED- 

FORD TO CLARENCE SHELTON, D/B/A ALEXANDER-ASHEVILLE 

BUS LINE, ALEXANDER, N. C. 

Order 

A petition (m the form of letter from George M, Pntchard, Attorney) 
accompanied by letters of transfer, has been filed with the Commission for 
approval of sale and transfer by Wade Shelton and Lewis Medford of all 
their interest and operating rights described in Order dated November 28, 
1947, Docket No. 4105. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved, insofar as the 
Commission is authorized to do under the provisions of General Statutes 62-107; 
that is to say, insofar as the said sale and transfer of the operating rights 
under Order dated November 28, 1947, Docket No. 4105, are concerned; 
that such approval should not be construed as a finding or as any representation 
by the Commission as to the value of the property included in said sale 
for rate making purposes or for any other purpose, but merely to give 
validity as required by statute to the sale and transfer of the said operating 
rights under Order dated November 28, 1947, Docket No. 4105. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by Wade Shelton and Lewin 



Decisions and Adjustments of Complaints 313 

Medford of their rights, title and interest in operating rights under Order 
dated November 28, 1947, Docket No. 4105, be approved; said operating 
rights being particularly described as follows: 

To operate as motor vehicle carrier of passengers from Asheville 
over N. C. Highway 63 and N. C. Highway 191 to Electric Power 
Water Plant below Elk Mountain, with closed doors ; thence over 
Highway 191 to the intersection of Highways 25 and 70; thence 
with closed doors over Highvv^ays 25 and 70 a distance of five 
miles to Alexander; thence over Fletcher Martin Road (Unnumbered) 
two and one-half miles to Carter's Store ; thence over Old N. C. 
Highway 20 one mile to Sulphur Springs ; thence over Old Highway 
20 four miles to Zeb Jarrett's Woods ; thence over Turkey Creek Road 
one mile to Turkey Creek Church ; thence over Bear Creek Road 
four miles to its intersection with the Leicester Road; thence continuing 
with Bear Creek Road two miles to Robert's Store ; thence retracing 
said two miles to said intersection with the Leicester Road; thence 
one mile over the Leicester Road to its intersection with Ridgeview 
Road; thence over Ridgeview Road 300 yards to H. Parham's Store; 
thence over Ridgeview Road one mile to its intersection with Old 
N. C. Highway 20; thence with said N. C. Highway 20 two miles 
to Carter's Store ; and return to Asheville. 

(2) That franchise certificate be granted to Clarence Shelton, d/b/a 
Alexander-Asheville Bus Line, Alexander, N. C, for the operating rights 
as described in Paragraph (1) above. 

(3) That this Order shall not become effective until compliance has been 
made with all the requirements of the Commission. 

By Order of the Commission. 

This the 11th day of February, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk ^ 



PETITION FOR APPROVAL OF SALE AND TRANSFER OF 
OPERATING RIGHTS UNDER CERTIFICATE NO. 640 BY CLARENCE 
SHELTON, D/B/A ALEXANDER-ASHEVILLE BUS LINE, ALEXAN- 
DER. N. C TO ROBERT BALLARD. ASHEVILLE. N. C, 

Order 

A petition, accompanied by contract, has been filed with the Commission 
for approval of sale and transfer by Clarence Shelton, d/b/a Alexander- 
Asheville Bus Line of operating rights described in Certificate No. 640 to 
Robert Ballard, Asheville, N. C. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved, insofar as the 



314 N. C. Utilities Commission 

Commission is authorized to do under the provisions of General Statutes 
62-107; that is to say, insofar as the said sale and transfer of the operating 
rights under Certificate No. 640 are concerned; that such approval should 
not be construed as a finding or as any representation by the Commission 
as to the value of the property included in said sale for rate making 
purposes or for any other purpose, but merely to give validity as required 
by statute to the sale and transfer of said operating rights under Certificate 
No. 640. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by Clarence Shelton, d/b/a 
Alexander-Asheville Bus Line of his operating rights be approved ; said 
operating rights being particularly described as follows : 

To operate as motor vehicle carrier of passengers from Asheville 
over N. C. Highway 63 and N. C. Highway 191 to Electric Power 
Water Plant below Elk Mountain, with closed doors ; thence over 
Highway 191 to the intersection of Highways 25 and 70; thence 
with closed doors over Highways 25 and 70 a distance of five miles 
to Alexander; thence over Fletcher Martin Road (Unnumbered) two 
and one-half miles to Carter's Store; thence over Old N. C. 
Highway 20 one mile to Sulphur Springs ; thence over Old Highway 
20 four miles to Zeb Jarrett's Woods ; thence over Turkey Creek Road 
one mile to Turkey Creek Church ; thence over Bear Creek Road four 
miles to its intersection with the Leicester Road ; thence continuing 
with Bear Creek Road two miles to Robert's Store ; thence retracing 
said two miles to said intersection with the Leicester Road ; thence 
one mile over the Leicester Road to its intersection with Ridgeview 
Road ; thence over Ridgeview Road 300 yards to H. Parham's Store ; 
thence over Ridgeview Road one mile to its intersection with Old 
N. C. Highway 20; thence with said N. C. Highway 20 two miles 
to Carter's Store ; and return to Asheville, 

(2) That franchise certificate be granted to Robert Ballard, Asheville, 
N. C. for the operating rights as described in Paragraph (1) above, 

(3) That this Order shall not become effective until compliance has 
been made with all the requirements of the Commission. 

By Order of the Commission. 

This the 24th day of September, 1948. 

R G, Johnson, Commissioner 
ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4518 



Decisions and Adjustments of Complaints 315 

APPLICATION OF LORENA GRAHAM QUINN, D/B/A ARDEN 
STAGES TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS: L FROM PACK SQUARE. ASHEVILLE, N. C, ON 
COLLEGE STREET 1.3 MILES TO BEAUCATCHER ROAD; FROM 
BEAUCATCHER ROAD TO CHUNN'S COVE ROAD, CROSSING 
HIGHWAYS U. S. 70 AND 74, AND ON CHUNN'S COVE ROAD 2.2 
MILES TO CAMP ALICE AND RETURN OVER THE SAME ROUTE, 
WITH CLOSED DOORS FROM PACK SQUARE OVER COLLEGE 
STREET TO THE INTERSECTION OF COLLEGE STREET AND THE 
SCENIC HIGHWAY (AS AMENDED). 2. BEGINNING ON SWEETEN 
CREEK ROAD AT CRAYTON ROAD, TRAVELING .5 MILE ON 
CRAYTON ROAD TO WEST CHAPEL ROAD; TRAVELING WEST 
CHAPEL ROAD L8 MILES TO ROCK HILL ROAD; THENCE OVER 
ROCK HILL ROAD TO THE INTERSECTION OF SWEETEN CREEK 
ROAD AND RETURN OVER THE SAME ROUTE. 

Order 

Before Commissioner Johnson. . . 

Appearances: For Applicant: 

Sam M. Cathey. Attorney. Asheville. N. C. 
For Protestants : 



James S. Howell, Attorney, Asheville, N. C. 
for Jack Bryson 



Johnson, Commissioner; 



This cause came on for hearing at the Langren Hotel in Asheville, 
N. C. on August 14, 1947. Convenience and necessity was shown by numerous 
witnesses who testified that the area sought to be served by the applicant 
is without public transportation except that part of the application from 
the intersection of Rock Hill Road and Sweeten Creek Road to Roger's 
Store, which route is now being served by Jack Bryson. 

The Commission finds that the operation proposed by the applicant would 
be difficult and would not render the service unless applicant were permitted 
to operate from Rogers' Store to Sweeten Creek Road. Convenience and 
necessity having been shown ; 

It Is, Therefore, Ordered, That the application of Lorena Graham Quinn, 
d/b/a Arden Stages, be, and the same is hereby, granted; that when the 
applicant has complied with all rules and regulations of this Commission the 
present franchise certificate of Arden Stages be amended as follows: 

From Pack Square, Asheville, N. C, on College Street 1.3 miles to 
Beaucatcher Road; from Beaucatcher Road to Chunn's Cove Road, crossing 
Highways U. S. 70 and 74, and on Chunn's Cove Road 2.2 miles to Camp 
Alice and return over the same route, with closed doors from Pack Square 
over College Street to the intersection of College Street and the Scenic 
Highway. 



316 N. C. Utilitiks Commission 

Beginning on Sweeten Creek Road at Craylon Road, travelling .5 mile 
on Crayton Road to West Chapel Road; travelling West Chapel Road 1.8 
miles to Rock Hill Road; thence over Rock Hill Road to the intersection 
of Sweeten Creek Road, and return (wer the same route. 

This 17th day of September, 1947. 

Stanley W inborn p:, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3986 

AFPI.ICA'JTON OF MISS LORENA GRAHAM IVB/A ARDEN STAGES, 
ASHEVILLE, N. C, TO TRANSPORT PASSENGERS FROM PACK 
SQUARE IN ASHEVILLE OVER STREETS IN ASHEVILLE AND 
ROADS OUTSIDE Ol^^ ASHEVILLE AS FOLLOWS: COLLEGE 
STREET. POPLAR STREET, KENILWORTH ROAD, BEAUCATCHER 
ROAD, AURORA DRIVE AND AURORA DRIVE EXTENSION. 

Order Permfttinc; Withdrawal 

Whereas, the above ai)])lication was bled with the Commission on March 
22, 1948, and set for hearing in Asheville. North Carolina, on August 18, 
1948, at 10:00 a. m. and communication has been received from Sam M. 
Cathey, attorney for applicant, requesting withdrawal of the application. 

It Is, Thereeore, Ordered that said ai)i)lication be dismissed and docket 
closed. 

By Order oe the N. C. Uthjties Commission. 

This the 30th day of August, 1948. 

Fred C. Hunter, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4351 

APPLICATION OF LORENA GRAHAM QUINN. D/B/A ARDEN 

STAGES FOR AUTHORITY TO OPERATE AS MOTOR VEHICLE 

CARRIER OF PASSENGERS OVER AN UNNAMED DIRT ROAD 

WHICH IS AN EXTENSION OF PRESENT FRANCHISE. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

Sam Cathey, Asheville, N. C. 

For Protestants : None. 
Johnson, Commissioner: 

This application was heard on the 30th day of November, 1948, at the 



Decisions and Adjustments of Complaints 317 

Buncombe County Courthouse in Asheville, N. C. 

The appHcant seeks authority to extend operations covered in present 
franchise. The area sought to be served is a densely populated rural area. 
Many of the people living along this route are employed in the City of 
Asheville and are without public transportation. 

Convenience and necessity having been shown ; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all rules and regulations of 
this Commission the present franchise certificate of Lorena Graham Quinn, 
d/b/a Arden Stages, be amended as follows: 

To transport passengers, their baggage, mail and light express, beginning 
at a point at the East margin of the village of Fletcher, the end of the 
present franchise of applicant, Certificate No. 621, and running in a southern 
direction over an unnamed road for a distance of approximately 300 yards 
at a point where it enters a portion of the Old Asheville-Hendersonville 
Highway, lying East of Southern Railway for approximately two miles to 
a point to where the Brickton Road enters the Old Asheville-Hendersonville 
Highway; thence West over Brickton Road to a point just West of Edwards 
Place, and return over the same route. 

This 16th day of December, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4519 

PETITION OF T. E. McGILL, D/B/A ASHEBORO COACH COMPANY, 

FOR APPROVAL OF LEASE AGREEMENT WITH GREENSBORO- 

FAYETTEVILLE BUS LINES, INC. 

Order Denying Petition 

Whereas, the above petition was filed with the Commission on December 
10, 1947, and considered at conference held on Tuesday, December 16, 1947, 
application was denied on the grounds that both Greensboro-Fayetteville 
Bus Lines, Inc., and the R. and R. Transit have franchise rights over this 
route. . 

It Is Ordered that said petition be denied. 

By Order of the Commission. 

This the 29th day of December, 1947. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 4262 



318 N. C. Utilities Commission 

APPLICATION OF GENE BURLESON, T/A ASHEVILLE-BINGHAM 
HEIGHTS BUS LINE. FOR AUTHORITY TO TRANSPORT 
PASSENGERS OVER THE FOLLOWING ROUTE: FROM INTER- 
SECTION OF COLLEGE STREET AND LEXINGTON AVENUE, AT 
REAR OF KRESS STORE, IN THE CITY OF ASHEVILLE, AND 
PROCEED WEST ON COLLEGE STREET TO PATTON AVENUE; 
THENCE DOWN PATTON AVENUE AND ONTO CLINGMAN 
AVENUE TO CRAVEN STREET AT END OF WEST ASHEVILLE 
BRIDGE (CLOSEi; DOORS TO THIS POINT); THENCE FROM 
CRAA^EN STREET TO WAYNESVILLE AVENUE; THENCE TO 
WESTWOOD PLACE; THENCE DOWN WESTWOOD PLACE TO 
RICHLAND STREET; THENCE DOWN RICHLAND STREET TO 
HAZEL MILL ROAD IN PEA RIDGE SECTION; TURN RIGHT AT 
TOP OF HILL AND PROCEED TO EMMA OVER UNNAMED GRAVEL 
ROAD; THENCE PROCEED EAST FROM EMMA OVER UNNAMED 
GRAVEL ROAD TO BINGHAM HEIGHTS AND THENCE TO 
RIVERVIEW CHURCH, AND RETURN OVER THE SAME ROUTE. 

Order 
Before Commissioner Johnson. 

Appearances: For the applicant. 

James S. Howell, Attorney, Asheville, N. C. 

For Protestants : 

J. Marvin Glance, Attorney, Asheville, N. C, 

For Leicester Bus Lines. 
E. L. Loftin, Attorney, Asheville, N. C, 
for White Transportation Company. 

Johnson, Commissioner: 

This application was heard at Hickory. N. C, on the 8th day of October, 

1947, at 10:00 A. M. Protests were filed by Glen Ray. d/b/a Leicester 

Bus Line, and White Transportation Company. Affidavit of Publication of 
Notice was filed on October 3, 1947. 

The applicant seeks authority to operate over certain streets in the City 
of Asheville, beginning at the rear of Kress' Store located at the intersection 
of College Street and Lexington Avenue, with closed doors to Craven Street 
at the end of West Asheville Bridge ; thence with open doors over certain 
streets to the city limits ; thence over certain unnamed and unnumbered 
gravel roads to Emma ; thence from Emma over unnamed gravel road to 
Bingham Heights ; thence to Riverview Church and return. 

At the present time Leicester Bus Lines are operating into Emma from 
the East. The road over which the applicant seeks to operate passes through 
Emma in a North- South direction. The applicant agreed to operate that 
portion over the route for which he has applied within the City between 
Creesy's Store and Many Brothers Store until the White Transportation 



Decisions and Adjustments of Complaints 319 

Company starts service in that area ; then the applicant agreed to withdraw or 
operate with closed doors. 

Ample testimony was offered to show a need for the service proposed by 
the applicant. A large portion of the route covered by the application is not 
now served by authorized public transportation. Convenience and necessity 
having been found; 

It Is, Therefore, Ordered, That the application of Gene Burleson, t/a 
Asheville-Bingham Heights Bus Line, in this docket be, and the same is 
hereby, granted ; that when the applicant has complied with all rules and 
regulations of the Commission franchise certificate be issued as follows : 

To transport passengers over the following route: 

From intersection of College Street and Lexington Avenue, at rear of 
Kress Store, in the City of Asheville, and proceed West on College Street 
to Patton Avenue ; thence down Patton Avenue and onto Clingman Avenue 
to Craven Street at end of West Asheville Bridge (Closed doors to this 
point); thence from Craven Street to Waynes ville Avenue; thence to West- 
wood Place ; thence down Westwood Place to Richland Street ; thence down 
Richland Street to Hazel Mill Road in Pea Ridge section ; turn right at top 
of hill and proceed to Emma over unnamed gravel road ; thence proceed 
East from Emma over unnamed gravel road to Bingham Heights and 
thence to Riverview Church, and return over the same route. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 30th day of October, 1947. 



ATTEST: 

Chas. Z. Flack, Chiej Clerk 

Docket No. 4164 



RENEWAL OF FRANCHISE CERTIFICATE NO. 525 IN THE NAME 
OF ASHEVILLE-ELK MOUNTAIN BUS LINE. 

Advisory Opinion 

It appears from correspondence between the above named carrier and the 
Commission that there is some misunderstanding as to the termination of 
said carrier's certificate under the terms of the Commission's order in Docket 
No. 2528 and as to what effect, if any, the Commission's General Order in 
Docket No. 3511 with respect to termination of war emergency operating 
rights has upon termination of said carrier certificate No. 525. 

The Commission's order in Docket No. 2528, issued on May 28, 1942, 
grants to the Asheville-Elk Mountain Bus Line the right to transport passen- 
gers over the routes described in the application "Upon the condition that 
the Commission reserve the right to terminate this franchise at the end of 



520 N. C. Utilities Commission 

six months following a declaration of peace". The Commission has not 
exercised this right and until it does the franchise does not terminate under 
any limitations imposed by the Commission. Of course, all franchise certificates 
automatically expire three years from the date thereof as provided in G. S. 
62-106 but may be renewed for a period not exceeding three years as provided 
in G. S. 62-116. The certificate in question was issued on July 12, 1942. 
It expired and was renewed as provided in the Statutes on July 23, 1945. 
h will expire again on July 23, 1948, and is subject to renewal again at that 
time under G. S. 62-116. Nothing is required of the Asheville-Elk Bus Line 
until that date, and the Commission's General Order in Docket No. 3511 has 
no application to this case. 



This is by order of the Commission 
August 7, 1947. 



North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket Nos. 2528 & 3511 

APPLICATION OF NICHOLAS ATAMANCHUK FOR AUTHORITY 
TO TRANSPORT PASSENGERS OVER THE FOLLOWING ROUTES; 

1. BEGINNING AT THE INTERSECTION OF WASHINGTON AND 
WATER STREETS IN THE CITY OF PLYMOUTH; THENCE 
SOUTHWARDLY ALONG WASHINGTON STREET TO THE OLD 
LONG ACRE ROAD; THENCE WITH THE OLD LONG ACRE ROAD 
TO WEST AVENUE; THENCE ALONG WEST AVENUE TO 
HIGHWAY NO. 64; THENCE ALONG HIGHWAY NO. 64 TO THE 
OLD ROAD BEYOND THE LITTLE RICHWOOD VILLAGE; THENCE 
WITH SAID ROAD TO OAKFORD AVENUE IN THE LITTLE 
RICHWOOD VILLAGE; THENCE WITH OAKFORD AVENUE TO A 
ROAD LEADING TO HIGHWAY NO. 64 AND WITH SAID ROAD TO 
HIGHWAY NO. 64; THENCE WITH THE SAID HIGHWAY TO THE 
ROAD LEADING TO THE PULP MILL VILLAGE AND WITH SAID 
ROAD TO THE PULP MILL VILLAGE AND WITH THE ROAD OR 
STREET EXTENDING THROUGH THE SAME TO MAIN STREET 
EXTENDED AND WITH MAIN STREET EXTENDED BACK TO THE 

BEGINNING POINT. 

2. BEGINNING AT THE CORNER OF WASHINGTON AND MAIN 
STREETS IN THE TOWN OF PLYMOUTH AND THENCE WITH 
MAIN STREET WESTWARDLY TO THE CORPORATE LIMITS OF 
THE TOWN AND THENCE THE SAME COURSE CONTINUED, 
WITH THE ROAD ACROSS WELCHS CREEK TO THE PLANT OF 
THE NORTH CAROLINA PULP COMPANY: THENCE THROUGH 
THE GROUNDS AND WITH THE ROAD TO THE ROAD LEADING 
OUT TO STATE HIGHWAY NO. 64 NEAR THE VILLAGE OF 
DARDENS AND WITH SAID ROAD TO HIGHWAY NO. 64 AND 
WITH HIGHWAY NO. 64 EASTWARDLY TO THE BEGINNING. 

3. BEGINNING AT THE CORNER OF WASHINGTON AND WATER 



Decisions and Adjustments of Complaints 321 

STREETS IN THE TOWN OF PLYMOUTH AND THENCE EAST- 
WARDLY WITH WATER STREET TO MADISON STREET; THENCE 
WITH MADISON STREET TO MAIN STREET; THENCE WITH 
MAIN STREET EASTWARDLY TO THE CORPORATE LIMITS OF 
THE TOWN OF PLYMOUTH; AND THENCE THE SAME GENERAL 
DIRECTION CONTINUED, WITH HIGHWAY NO. 64 TO THE CROSS 
ROADS ABOUT TWO MILES EASTWARDLY FROM THE TOWN OF 
PLYMOUTH; THENCE TURNING AROUND, FOLLOW THE SAME 
ROUTE WESTWARDLY BACK TO THE BEGINNING IN THE TOWN 

OF PLYMOUTH. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

W. L. Whitley, Attorney, Plymouth, N. C. 

For Protestants: 
None. 

Johnson, Commissioner: 

This application was set for hearing on the 12th day of August, 1948, 
at the Pasquotank County Courthouse in Elizabeth City, N. C. There arose 
some question as to the sufficiency of the notice published, and in order that 
the applicant might publish proper notice hearing was postponed until the 
30th day of August, 1948, at ten A. M., to be heard in Raleigh, N. C, in 
the Courtroom of the North Carolina Utilities Commission, at which time 
the case was called for hearing and affidavit of publication of notice was filed. 

The applicant filed with the Commission copy of an ordinance passed by 
the City of Plymouth granting to the applicant authority to establish, operate 
and maintain motor bus transportation in the City of Plymouth, dated the 
5th day of December, 1947. The applicant further offered numerous witnesses 
who testified in behalf of this application. 

Convenience and necessity having been found; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when the applicant has complied with all rules and regulations 
of this Commission franchise certificate be issued to Nicholas Atamanchuk 
as follows : 

To transport passengers over the following routes : 

1. Beginning at the intersection of Washington and Water Streets in the 
City of Plymouth; thence southwardly along Washington Street to the Old 
Long Acre Road ; thence with the old Long Acre road to West Avenue ; 
thence along West Avenue to Highway No. 64; thence along Highway No. 
64 to the old road beyond the Little Richwood Village; thence with said 
road to Oakford Avenue in the Little Richwood Village; thence with Oakford 
Avenue to a road leading to Highway No. 64, and with said road to 
Highway No. 64; thence with the said highway to the road leading to 



322 N. C. Utilities Commission 

the Pulp Mill Village and with said road to the Pulp Mill Village, and 
with the road or street extending through the same to Main Street extended 
and with Main Street extended back to the beginning. 

2. Beginning at the corner of Washington and Main Streets in the Town 
of Plymouth and thence with Main Street westwardly to the corporate 
limits of the town and thence the same course continued, with the road 
across Welchs Creek to the plant of the North Carolina Pulp Company; 
thence through the grounds and with the road to the road leading out to 
State Highway No. 64 near the village of Dardens, and with said road to 
Highway No. 64, and with Highway No. 64 eastwardly to the beginning. 

3. Beginning at the corner of Washington and Water Streets in the Town 
of Plymouth and thence eastwardly with Water Street to Madison Street; 
thence with Madison Street to Main Street ; thence with Main Street east- 
wardly to the corporate limits of the Town of Plymouth; and thence the 
same general direction continued, with Highway No. 64 to the Cross Roads 
about two miles eastwardly from the Town of Plymouth; thence turning 
around, follow the same route westwardly back to the beginning in the 
Town of Plymouth. 

This 30th day of August, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4365 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
ATLANTIC GREYHOUND CORPORATION AND STATESVILLE 
MOTOR COACH CO., INC., STATESVILLE, N. C, RELATING TO 
LEASE OF CERTAIN FRANCHISE RIGHTS OVER U. S. HIGHWAY 
21 FROM TROUTMAN TO HARMONY, VIA STATESVILLE, AND 
FROM STATESVILLE TO TAYLORSVILLE OVER N. C. HIGHWAY 90. 



Order 

It appears from a petition dated July 10, 1947, and filed with the Commission 
on said date, that Atlantic Greyhound Corporation and Statesville Motor 
Coach Company, Inc., of Statesville, N. C, have entered into an agreement, 
a copy of which is attached to the petition, whereby said Statesville Motor 
Coach Company, Inc., is authorized, subject to the approval of the Commission, 
to operate over the franchise routes of the first named carrier as follows: 

1. Over U. S. Highway 21 from Troutman to Harmony, via Statesville 
and from Statesville to Taylorsville over N. C. Highway 90. 

Upon consideration of said petition the same is hereby approved and said 
Statesville Motor Coach Company, Inc., authorized to begin operations under 
said agreement upon filing the proper schedules and tariff with the Commission, 



Decisions and Adjustments of Complaints 323 

and upon compliance with insurance covering equipment to be used in such 
operations. 

By Order of the Commission. 
This the 29th day of July, 1947. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk . 

Docket No. 2115 '- 

PETITION FOR APPROVAL OF AGREEMENT BETWEEN ATLANTIC 
GREYHOUND CORPORATION AND R AND R TRANSIT COMPANY, 
INC., ASHEBORO, N. C, RELATING TO BUS SERVICE OVER AND 
ALONG THAT CERTAIN DISTANCE ON U. S. HIGHWAY 64 LYING 
BETWEEN THE JUNCTION OF U. S. 64 AND THE COUNTY 
HIGHWAY RUNNING FROM U. S. 64 INTO CEDAR FALLS, AND 
THE JUNCTION OF U. S. 64 AND U. S. 64-A WEST OF FRANKLIN- 
VILLE, THE SAID DISTANCE BETWEEN THE TWO SAID 
JUNCTIONS BEING ABOUT ONE (1) MILE. 

Order 

It appears from a Petition dated June IS, 1947, and filed with the Commission 
on September 6, 1947, that Atlantic Greyhound Corporation and R and R 
Transit Company, Inc., Asheboro, N. C, have entered into an agreement, 
a copy of which is attached to the Petition, whereby said R and R Transit 
Company, Inc., is authorized, subject to approval of the Commission, to 
operate certain schedules over the franchised routes of the first named carrier 
as follows : 

(1) Over and along that certain distance on U. S. 64 lying between 
the junction of U. S. 64 and the County Highway running from U. S. 64 
into Cedar Falls, and the junction of U. S. 64 and U. S. 64-A west of 
Franklinville, the said distance between the two said junctions being about 
one mile. 

Upon consideration of said petition, the same is hereby approved, and said 
R and R Transit Company, Inc., is authorized to begin operations under 
said agreement upon filing proper schedules and tariffs with the Commission, 
and upon compliance with insurance covering equipment to be used in such 
operation. 

By Order of the North Carolina Utilities Commission. 
This the 9th day of September, 1947. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 2539 



324 N. C. Utilities Commission 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
AUTHORITY TO TRANSFER LEASE FROM JOHN LOY, D/B/A 
CITY BUS CO., TO T. RALPH YOUNG, D/B/A CITY BUS CO., 
HENDERSONVILLE, N. C, AND EXTENSION OF PERIOD OF 
AGREEMENT TO OCTOBER 31, 1948. 

Order 

It appears from a petition dated September 25, 1947, and filed with the 
Commission on September 26, 1947, that Atlantic Greyhound Corporation and 
T. Ralph Young, d/b/a City Bus Company, Hendersonville, N. C, have 
entered into an agreement, a copy of which is attached to the petition, 
whereby said T. Ralph Young, d/b/a City Bus Company, is authorized, 
subject to the approval of the Commission, to operate over the franchised 
routes of Atlantic Greyhound Corporation until October 31, 1948, as follows : 
Over U. S. Highway 25 between Hendersonville and Tuxedo. 

Upon consideration of said petition, the same is hereby approved, and the 
said T. Ralph Young, d/b/a City Bus Company, is authorized to begin 
operations over said route upon filing the proper schedules and tariff with 
the Commission and upon compliance with insurance covering equipment to be 
used in such operation. 



By Order of the Commission. 

This the 9th day of October, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Docket No. 2810 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
AUTHORITY TO TRANSFER LEASE AGREEMENT COVERING 
OPERATION BETWEEN HENDERSONVILLE AND TUXEDO, FROM 
T. RALPH YOUNG, D/B/A CITY BUS COMPANY TO JACK BRYSON, 

D/B/A CITY BUS COMPANY, OF HENDERSONVILLE, AND 
EXTENSION OF PERIOD OF AGREEMENT TO OCTOBER 31, 1949. 

Order 

An agreement between Atlantic Greyhound Corporation, as lessor, and Jack 
Bryson, d/b/a City Bus Company, Hendersonville, N. C, as lessee, dated 
September 24, 1948, has been filed with the Commission for approval for the 
right to engage in the transportation of passengers over the franchised routes 
of the said lessor as particularly described in Paragraph (1) of the order herein. 
Upon consideration of said lease agreement and the petition attached thereto, 
the Commission is of the opinion that the same should be approved. 

It Is, Therefore, Ordered: 

(1) That the operating rights described in said lease agreement be approved 
and the said Jack Bryson, d/b/a City Bus Company is hereby authorized 



Decisions and Adjustments of Complaints 325 

to operate as lessee of the Atlantic Greyhound Corporation in the transportation 
of passengers over the following routes and between the following points : 
(a) In intrastate service between Hendersonville and Tuxedo. 

By Order of the Commission. 

This the 28th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 2810 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND RIDER 
BETWEEN ATLANTIC GREYHOUND CORPORATION AND 
MARSHALL A. GABRIEL, D/B/A MOORESVILLE TRANSIT 
COMPANY COVERING OPERATION BETWEEN TROUTMAN AND 
MOORESVILLE AND BETWEEN CORNELIUS AND MOORESVILLE. 

Order 

The Atlantic Greyhound Corporation, as lessor, and Marshall A. Gabriel, 
d/b/a Mooresville Transit Company, as lessee, have entered into an agreement 
in the form of a rider dated June 3, 1948, extending the terms and conditions 
contained in agreement dated May 1, 1943, a copy of which has been filed 
with the Commission, by the terms of which said agreement the said lessee 
will be authorized to perform intrastate service between Troutman and 
Mooresville and between Cornelius and Mooresville, the franchise route of 
the said lessor, under the conditions set out in said agreement and rider 
thereto. Upon consideration of said agreement, the Commission is of the 
opinion that the same should be approved, subject to the continuing right 
of the Commission to act in the premises as the public interest may require ; 
and it is so ordered. 

R. G. Johnson, Commissioner 

This the 10th day of June, 1948. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 2919 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND RIDER 
BETWEEN ATLANTIC GREYHOUND CORPORATION LENOIR 
MOTOR COACH COMPANY, INC., COVERING OPERATIONS 
BETWEEN LENOIR AND MORGANTON, AND BETWEEN LENOIR 
AND TAYLORSVILLE. 

Order 

The Atlantic Greyhound Corporation, as lessor, and Lenoir Motor Coach 
Company, Inc., as lessee, have entered into an agreement in the form of a 
rider dated April 1st 1948, extending the terms and conditions contained in 



326 N. C. Utilities Commission 

agreement dated April 1st 1946, a copy of which has been filed with the 
Commission, by the terms of which said agreement the said lessee will b© 
authorized to perform intrastate service between Lenoir and Morganton, and 
between Lenoir and Taylorsville, the franchise route of the said lessor, under 
the conditions set out in said agreement and rider thereto. Upon consideration 
of said agreement, the Commission is of the opinion that the same should 
be approved nunc pro tunc, subject to the continuing right of the Commission 
to act in the premises as the public interest may require; and it is so ordered. 
This the 19th day of May, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3093 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND RIDER 
BETWEEN ATLANTIC GREYHOUND CORPORATION, AND WILKES 
TRANSPORTATION COMPANY, RELATING TO LOCAL SERVICE 
BETWEEN MORAVIAN FALLS AND TAYLORSVILLE OVER N. C. 

HIGHWAY NO. 16. 

Order 

The Atlantic Greyhound Corporation, as lessor, and the Wilkes Transportation 
Company, as lessee, have entered into an agreement in the form of a rider 
dated February 24th 1948, extending the term and conditions contained in 
agreement dated May 22nd 1945, a copy of which has been filed with the 
Commission, by the terms of which said agreement the said lessee will be 
authorized to perform local intrastate service between Moravian Falls and 
Taylorsville over N. C. Highway No. 16, the franchise route of the said 
lessor, under the conditions set out in said agreement and rider thereto. 
Upon consideration of said agreement, the Commission is of the opinion that 
the same should be approved nunc pro tunc, subject to the continuing right 
of the Commission to act in the premises as the public interest may require; 
and it is so ordered. 

This the 17th day of May 1948. 

R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3347 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
ATLANTIC GREYHOUND CORPORATION AND WILKES TRANS- 
PORTATION COMPANY WITH REFERENCE TO AGREEMENT 
DATED APRIL 15, 1948. 

Order 

A lease agreement between Atlantic Greyhound Corporation, as lessor, and 
Wilkes Transportation Company, as lessee, dated the 15th day of April, 1948, 



Decisions and Adjustments of Complaints 327 

has been filed with the Commission for approval for the right to engage in 
the transportation of passengers over the franchisee! routes of the said lessor 
as particularly described in Paragraph (1) of the order herein. Upon consider- 
ation of said lease agreement and the petition attached thereto, the Commission 
is of the opinion that the same should be approved. 

It Is, Therefore, Ordered : 

(1) That the operating rights described in said lease agreement be approved 
and the said Wilkes Transportation Company is hereby authorized to operate 
as lessee of the Atlantic Greyhound Corporation in the transportation of 
passengers over the following routes and between the following points: 

(a) In intrastate service over N. C. Highway 18 between Moravian 
Falls and Smith Store. 

By Order of the Commission. 

This the 10th day of June, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3347 

LEASE AGREEMENT BETWEEN THE ATLANTIC GREYHOUND 
CORPORATION, LESSOR, AND THE SUBURBAN TRANSIT LINES. 
INC., LESSEE, RELATING TO OPERATIONS BETWEEN WINSTON- 
SALEM AND CLEMMONS OVER U. S. HIGHWAY NO. 158. 

Order 

The Atlantic Greyhound Corporation, lessor, and the Suburban Transit Lines, 
Inc., lessee, entered into a Lease Agreement dated December 1, 1945, copy 
of which was filed with the Commission, in this cause and approved by the 
Commission in an order dated December 12, 1945, which provided in substance 
for the operation by said lessee of certain schedules over the franchise route 
of the lessor between Winston- Salem and Clemmons over U. S. Highway No. 
158. II .,„*|f|| 

Now come the above parties by letter and petition dated January 10, 
1947, and copy of memorandum entered into by the above parties December 1, 
1946, agreeing to a continuation of the contract dated December 1, 1945, and 
seeking approval of this Commission for such contract. It appears to the 
Commission that the service rendered by said Lease Agreement is needed 
and is not inconsistent with the public interest and should be approved. 

It Is, Therefore, Ordered, That said Lease Agreement between the Atlantic 
Greyhound Corporation and the Suburban Transit Lines, Inc., dated the first 
day of December, 1946, providing for an additional period of one year to 
December 1, 1947, be, and the same is, hereby approved subject to the 
continuing right of the Commission to act in the premises as the public 
interest may require. 

This the 18th day of January, 1947. 

North Carolina Utilities Commission 
Charles Z. Flack. Chief Clerk 
Docket No. 3462 



328 N. C. Utilities Commission 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND RIDER 
BETWEEN ATLANTIC GREYHOUND CORPORATION AND 

SUBURBAN TRANSIT LINES, INC., COVERING OPERATIONS OVER 

U. S. HIGHWAY 52 BETWEEN STANLEYVILLE AND THE 

JUNCTION OF U. S. 52 AND N. C. NO. 8 AND BETWEEN 

STANLEYVILLE AND RURAL HALL. 

Order 

The Atlantic Greyhound Corporation, as lessor, and Suburban Transit Lines, 
Inc., as lessee, have entered into an agreement in the form of a rider dated 
February 1, 1948, extending the terms and conditions contained in agreements 
dated February 1, 1946 and July 9, 1946, copies of which have been filed 
v^ith the Commission, by the terms of which said agreement the said lessee 
will be authorized to perform intrastate service over U. S. Highway 52 
between Stanleyville and the Junction of U. S. 52 and N. C. No. 8 and 
between Stanleyville and Rural Hall, the franchise route of the said lessor, 
under the conditions set out in said agreements and rider thereto. Upon 
consideration of said agreements, the Commission is of the opinion that the 
same should be approved nunc pro tunc, subject to the continuing right 
of the Commission to act in the premises as the public interest may require; 
and it is so ordered. 

This the 5th day of August, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 3462 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND RIDER 
BETWEEN ATLANTIC GREYHOUND CORPORATION AND SUBUR- 
BAN TRANSIT LINES, INC., COVERING OPERATIONS BETWEEN 
WINSTON-SALEM AND CLEMMONS. 

Order 

The Atlantic Greyhound Corporation, as lessor, and Suburban Transit Lines, 
Inc., as lessee, have entered into an agreement in the form of a rider dated 
May 25, 1948, extending the terms and conditions contained in agreement 
dated December 1, 1945 and by memorandum dated December 1, 1946, copies 
of which have been filed with the Commission, by the terms of which said 
agreement the said lessee will be authorized to perform intrastate service 
between Winston-Salem and Clemmons, over U. S. Highway No. 158, the 
franchise route of the said lessor, under the conditions set out in said 
agreement and rider thereto. Upon consideration of said agreement, the 
Commission is of the opinion that the same should be approved nunc pro 
tunc, subject to the continuing right of the Commission to act in the premises 
as the public interest may require ; and it is so ordered. 

This the 5th day of August, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 3462 



Decisions and Adjustments of Complaints 329 

OPERATION OF SERVICE BETWEEN CREEDMOOR, N. C, AND 

CAMP BUTNER, N. C, OVER FRANCHISE GRANTED ATLANTIC 

GREYHOUND CORPORATION. 

Order 

This matter again coming on to be considered by the Commission upon 
Petition of the Atlantic Greyhound Corporation herein, the Commission finds 
that there is now located at Camp Butner certain Federal and State activities 
which require employment of people who live in Raleigh and at Oxford, or 
between Creedmoor and Oxford on the one hand or Creedmoor and Raleigh 
on the other hand, and that the persons in charge of said activities have 
requesled the rendering of certain transportation service between Creedmoor 
and Camp Butner. That the Atlantic Greyhound Corporation was authorized 
to discontinue said service on May 14, 1946, at which time the Order provided 
that service between Camp Butner and Creedmoor would be reestablished at any 
time or times in the future as ordered by the Commission. 

It Is Now, Therefore, Ordered that the reestablishment of service between 
Camp Butner and Creedmoor be authorized, upon the filing of schedules 
and tarififs. 

By Order of the Commission. 

This the 6th day of November, 1947. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3631 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM JUNCTION OF U. S. HIGHWAY NO. 70 AND 
UNNUMBERED STATE HIGHWAY FOUR MILES SOUTH OF 
CLAYTON VIA UNNUMBERED STATE HIGHWAY VIA TOWN OF 
WILSON MILLS TO JUNCTION OF UNNUMBERED HIGHWAY 
AND U. S. 70 JUST NORTH OF SMITHFIELD. 

' Order 

Appearance: 

For Applicant : 

Mr. I. M, Bailey, attorney for Atlantic Greyhound Corporation, 
Raleigh, Ehringhaus & Ehringhaus, attorneys for Atlantic Greyhound 
Corporation, Raleigh, N. C. 

Mr. William B. Wellons, attorney for Atlantic Greyhound Corpo- 
ration, Smithfield, N. C. 

Mr. James N. Smith, attorney for the Atlantic Greyhound Corpor- 
ation, Goldsboro, N. C. 

For Protestant: 

Mr. D. L. Ward, Attorney for Seashore Transportation Co., 
New Bern. 



330 N. C. Utilities Commission 

Mr. W. Frank Taylor, attorney for Seashore Transportation Co., 
Goldsboro, N. C. 

Mr. Norman C. Shepard, attorney for Seashore Transportation Co., 
Smithfield, N. C. 
WiNBORNE, Chairman 

This Matter came on for hearing and was heard before the full Commission 
on April 30, 1947, in the hearing room of the Commission in the City of 
Raleigh. 
Affidavit of publication of notice of the hearing was filed November 27, 1946. 
In this case the Atlantic Greyhound Corporation seeks a franchise to 
divert some of its schedules, which schedules are filed with the Commission, from 
its present franchise route between Smithfield and Raleigh from the junction 
of U. S. Highway No. 70 and unnumbered highway four miles south of 
Clayton, N. C. to junction of unnumbered highway and U. S. Highway No. 
70 via unnumbered highway through the town of Wilson Mills, N. C. 

The applicant, Atlantic Greyhound Corporation, offered the testimony of 
several witnesses as to the need for service through Wilson Mills as an 
off-route point from the main line of the Atlantic Greyhound Corporation 
operating between Goldsboro, Smithfield and Raleigh. The witnesses testified 
that there were many people in Wilson Mills who worked in Raleigh and who 
commuted each day ; that at the present time they either had to go by 
private conveyance to Smithfield or Clayton to take the bus or continue 
by automobile into Raleigh ; that in addition to people who worked in Raleigh 
many of the other people there come to Raleigh frequently to shop and for 
other purposes, and that there is great need for public transportation. Other 
witnesses testified that there would be a considerable amount of travel from 
Wilson Mills to Smithfield and on down south of Smithfield to Goldsboro 
and other eastern points. 

The protestant, Seashore Transportation Company, Inc.. admitted public 
convenience and necessity for the service from Smithfield through Wilson 
Mills into Raleigh, but contended that it should be given the franchise and 
not the Atlantic Greyhound Corporation. The application of the Atlantic 
Greyhound Corporation and that of the Seashore Transportation Company 
were not combined but heard separately, the Atlantic Greyhound Corporation 
being heard first, and that of the Seashore Transportation Company begun 
on the same day following the hearing of the Atlantic Greyhound application. 
At this time the Commission is issuing an order granting to the Seashore 
Transportation Company a franchise to operate buses from Goldsboro through 
Smithfield, Wilson Mills on to Raleigh, which extends the present franchise 
of the Seashore Transportation Company which originates at Atlantic, N. C. 
In its order authorizing the operation of buses through Wilson Mills by the 
Seashore Transportation Company, the number of schedules which shall be 
operated by the Seashore Transportation Company into Raleigh is limited 
to two each way per day. One of these schedules leaves Beaufort, N. C. 
for Raleigh at 6 :40 a. m. The afternoon schedule from Beaufort to Raleigh 
leaves Beaufort at 1:15 p. m. The schedule from Raleigh to Beaufort leaves 
Raleigh at 8:30 a. m., and the afternoon schedule from Raleigh to Beaufort 
at 6:00 p. m. These schedules of the Seashore Transportation Company are 
designed to serve the people coming from the eastern part of the State to 



Decisions and Adjustments of Complaints 331 

Raleigh, and the people going from Raleigh to the eastern part of the 
State and do not meet the needs of people traveling from Wilson Mills to 
Raleigh, nor from Raleigh to Wilson Mills, as do the schedules proposed by 
the Atlantic Greyhound Corporation. 

For the above reasons, the Commission finds as a fact that public convenience 
and necessity has been shown for the operation of the schedules proposed 
by the Atlantic Greyhound Corporation, on file with the Commission. 

Wherefore It Is Ordered: - • 

That a franchise certificate be issued to the Atlantic Greyhound Corporation 
to operate buses for the transportation of passengers, their baggage, mail, 
newspapers and light express from the junction of U. S. Highway No. 70 
and unnumbered highway four miles south of Clayton, N. C. to junction of 
unnumbered highway and U. S. Highway No. 70 via unnumbered highway 
through the town of Wilson Mills. 

This the 20th day of June, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3758 

SALE AND TRANSFER OF CERTAIN OPERATING RIGHTS IN 

AND AROUND FRANKLINVILLE FROM ATLANTIC GREYHOUND 

CORPORATION TO R AND R TRANSIT COMPANY. 

Order Approving Sale 

It appears from the petition filed in this cause that the Atlantic Greyhound 
Corporation, as vendor, and R and R Transit Company, as vendee, have 
entered into an agreement under date of January 23, 1947, copy of which 
is attached to the petition, by which the said vendor agrees to sell and 
said vendee agrees to purchase for the sum of $25.00 the intrastate operating 
rights of the said vendor over the following routes: 

Beginning on U. S. Highway 64- A from the point of its junction 
with U. S. Highway 64 immediately west of Ramseur, thence via 
U. S. 64- A to Franklinville and continuing over U. S. Highway 
64- A to its junction with U. S. Highway 64, approximately six miles 
east of Asheboro. 
It also appears that the R and R Transit Company, Inc. is now operating 
over this route above described under a lease agreement with the Atlantic 
Greyhound Corporation, and that said proposed sale will be an advantage 
to both of said carriers and to the public. 

It Is, Therefore, Ordered that said proposed sale be, and the same is, 
hereby approved, and that the franchise certificate of the Atlantic Greyhound 
Corporation be amended by striking therefrom the routes above described, and 
that the franchise certificate of R and R Transit Company, Inc. be amended 



332 N. C. Utilities Commission 

by adding thereto the said routes above described, said sale and transfer to 
become effective as of February 10, 1947. 

By order of the N . C. Utilities Commission. 

This the 10th day of February, 1947. 

North Carolina Utilities Commission 
Charles Z. Flack, Chief Clerk 
Docket No. 3899 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 

AUTHORITY TO ENTER INTO A LEASE AGREEMENT WITH 

HENDERSON BUS LINES, INCORPORATED. 

Order 

Atlantic Greyhound Corporation as lessor, and Henderson Bus Lines, 
Inc., as lessee, entered into an agreement dated the first day of March, 1947, 
a copy of which has been filed with the Commission, which said agreement 
provides for the operation of certain schedules by the said lessee over the 
franchise rights of the said lessor between Henderson and Oxford over 
U. S. Highway 158 for the transportation of passengers, said agreement to 
terminate March 1, 1948. 

Upon consideration of said agreement, the Commission is of the opinion 
that the same should be approved subject to the continuing right of the 
Commission to act in the premises as the interest of the public may require 
notwithstanding said agreement, and it is so ordered. 

This the 17th day of April, 1947. 

North Carolina Utilities Commission 
Stanley Winborne, Chairman 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3955 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND 
RIDER BETWEEN ATLANTIC GREYHOUND CORPORATION AND 
HENDERSON BUS LINES, INC. COVERING OPERATION BETWEEN 
HENDERSON AND LOUISBURG AND BETWEEN LOUISBURG AND 

FRANKLINTON. 

Order 

The Atlantic Greyhound Corporation, as lessor, and Henderson Bus Lines, 
Inc., as lessee, have entered into an agreement in the form of a rider dated 
April 10, 1948, extending the terms and conditions contained in agreement 
dated April 10, 1946, a copy of which has been filed with the Commission, 
by the terms of which said agreement the said lessee will be authorized 
to perform intrastate service between Henderson and Louisburg and between 
Louisburg and Franklinton over the franchise route of the said lessor, under 
the conditions set out in said agreement and rider thereto. Upon consideration 
of said agreement, the Commission is of the opinion that the same should 



Decisions and Adjustments of Complaints 333 

be approved, subject to the continuing right of the Commission to act in 
the premises as the pubHc interest may require; and it is so ordered. 

This the 30th day of June, 1948. 

R. G. Johnson, Commissioner 
ATTEST: . ' 

Chas. Z. Flack, Chief Clerk 

Docket No. 3955 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
ATLANTIC GREYHOUND CORPORATION AND SUBURBAN 
TRANSIT LINES, INC, WINSTON SALEM, N. C, RELATING TO 
LEASE OF CERTAIN FRANCHISE RIGHTS FROM THE BUS 
ZONE ON FOURTH STREET IN THE CITY OF WINSTON SALEM 
OVER U. S. HIGHWAY 52 TO ITS JUNCTION WITH N. C. 

HIGHWAY 8. 

Order 

It appears from a petition dated November 3, 1947, that Atlantic Greyhound 
Corporation and Suburban Transit Lines, Inc., Winston Salem, N. C. have 
entered into an agreement, a copy of which is attached to the petition, whereby 
said Suburban Transit Lines, Inc., Winston Salem, N. C, is authorized, 
subject to the approval of the Commission, to operate over the franchised 
route of the Atlantic Greyhound Corporation from the bus zone on Fourth 
Street in the City of Winston Salem over U. S. Highway 52 to its junction 
with N. C. Highway 8. 

Upon consideration of said petition, the same is hereby approved and the 
said Suburban Transit Lines, Inc., authorized to begin operations under 
said agreement upon filing of proper schedules and tariffs with the Commission, 
and upon compliance with insurance covering equipment to be used in such 
operations. 

By Order of the Commission. 

This the 21st day of November, 1947. 

R. G. Johnson, Commissioner 

North Carolina Utilities Commission 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4228 



334 N. C. Utilities Commission 

APPLICATION OF ATLANTIC GREYHOUND CORPORATION FOR 
AUTHORITY TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 
MAIL AND EXPRESS FROM JUNCTION OF U. S. HIGHWAY NO. 1 
AND UNNUMBERED HIGHWAY ABOUT 3.5 MILES NORTH OF 
RALEIGH AT WILSON'S SERVICE STATION OVER UNNUMBERED 
HIGHWAY LEADING NORTHWESTWARDLY ABOUT 2.5 MILES TO 
THE SIX FORKS-FALLS OF NEUSE HIGHWAY; THENCE OVER 
SIX FORKS-FALLS OF NEUSE HIGHWAY, THE SAME BEING AN 
UNNUMBERED HIGHWAY, ABOUT 3 MILES TO THE FALLS OF 
THE NEUSE; THENCE ABOUT 2.5 MILES TO N. C. HIGHWAY 
264; THENCE N. C. 264 INTO WAKE FOREST AND RETURN OVER 

SAME ROUTE. 



Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: ^ 

I. M. Bailey, Attorney, Raleigh, N. C. 

For Protestants : 

D. T. Ramsay, Rocky Mount, N. C, for 
Colonial Bus Lines 

Johnson, Commissioner: 

This application was heard on the 4th day of August, 1948, in the Courtroom 
oi the Utilities Commission in Raleigh, North Carolina, Protest was filed by 
Colonial Bus Lines. 

The Applicant proposes to serve a newly constructed hard surfaced road 
which leaves U. S. Highway No. 1 about two miles North of Raleigh and 
runs through Falls, N. C, to Junction of N. C. Highway 264, approximately 
two miles West of Wake Forest ; thence over said Highway to Wake Forest. 
This area is a thickly populated community without public transportation. 
Raleigh and Wake Forest are the trading centers used by the inhabitants 
of this section. At the Falls of Neuse there is in operation a cotton mill 
which employs many citizens living along this route who are without public 
transportation. Convenience and necessity having been shown; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all rules and regulations of 
this Commission its present franchise certificate be amended as follows : 

To transport passengers, their baggage, newspapers, express and mail in 
the same vehicles from Junction of U. S. Highway No. 1 and unnumbered 
County Highway approximately two miles North of Raleigh, N. C, and 
one mile South of Millbrook, N. C, over the said unnumbered County 
Highway through Falls, N. C, to Junction of N. C. Highway 264, approximately 



Decisions and Adjustments of Complaints 335 

two miles West of Wake Forest ; thence over N. C. 264 to Wake Forest, 
and return over the same route. 

This 5th day of August, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4264 

PETITION FOR APPROVAL OF EXTENSION AGREEMENT 
BETWEEN ATLANTIC GREYHOUND CORPORATION AND BURKE 
TRANSIT COMPANY, WITH REFERENCE TO AGREEMENT DATED 

APRIL 28, 194L 

ORbkK 

A lease agreement between Atlantic Greyhound corporation as lessor and 
Burke Transit Company, Morganton, N. C, as lessee, dated the 14th day of 
February, 1948, has been filed with the Commission for approval for the 
right to engage in the transportation nf passeiigers over the franchised routes 
of the said lessor as particularly described in Paragraph (1) of the order 
herein. Upon consideration of said lease agreement and the petition attached 
thereto, the Commission is of the opinion that the same should be approved. 
It Is, Therefore, Ordered: 

(1) That the operating rights described in said lease agreement be approved 
and the said Burke Transit Company is hereby authorized to operate as 
lessee of the Atlantic Greyhound Corporation in the transportation of passengers 
over the following routes and between the following points: 

(a) From the corporate limits of the Town of Morganton, 
' N. C, south over N. C. Highway 18 to Mull School House, 

a distance of approximately 1.5 miles, and from the corporate 
limits of Morganton north over said Highway to Piedmont Road, 
a distance of approximately 1.8 miles. 
By Order of the Commission. . ■ ■ • 

This the 27th day of April, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk ■ 

Docket No. 4349 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
ATLANTIC GREYHOUND CORPORATION AND TWIN CITY 

LINES, INC. 

Order 

A lease agreement between Atlantic Greyhound Corporation as lessor and 
Twin City Lines, Inc., Winston- Salem, North Carolina, as lessee, dated the 



336 N. C. Utilities Commission 

15th day of April, 1948, has been filed with the Commission for approval 
for the right to engage in the transportation of passengers over the franchised 
routes of the said lessor as particularly described in Paragraph (1) of the 
order herein. Upon consideration of said lease agreement and the petition 
attached thereto, the Commission is of the opinion that the same should be 
approved. 

It Is, Therefore, Ordered: 

(1) That the operating rights described in said lease agreement be approved 
and the said Twin City Lines, Inc. is hereby authorized to operate as lessee 
of the Atlantic Greyhound Corporation in the transportation of passengers 
over the following routes and between the following points : 

(a) From the corporate limits of Winston- Salem, N. C. 
and Sedge Garden over N. C. Highway 150, solely in intrastate 
service. 



By Order of the Commission. 
This the 10th day of June, 1948. 

ATTEST : 

Chas. Z. Flack, Chief Clerk 



R. G. Johnson, Commissioner 



Docket No. 4414 

FRANCHISE CERTIFICATE NO. 587, IN THE NAME OF C. E. 
AUTRY, RED SPRINGS, N. C, FROM RAEFORD TO ST. PAULS 
OVER N. C. HIGHWAY NO. 20; FROM DUFFIE'S (NEAR RED 
SPRINGS) TO RED SPRINGS OVER A COUNTY HIGHWAY, AND 
FROM RED SPRINGS TO ROWLAND OVER N. C. HIGHWAY 710 
VIA PEMBROKE, AND THENCE TO FAIRMONT OVER N. C. 
HIGHWAY 130, AND RETURN OVER THE SAME ROUTE. FROM 
LAUREL HILL TO FAYETTEVILLE OVER COUNTY HIGHWAY 
KNOWN AS THE OLD WIRE ROAD, VIA WAGRAM, ANTIOCH, 
DUNNDAROCH, HOPE MILLS AND CUMBERLAND MILLS, AND 
RETURN OVER THE SAME ROUTE; FROM ST. PAULS TO 
HIGHWAY 87 OVER N. C. HIGHWAY 20 VIA PAGE'S LAKE, AND 
RETURN OVER THE SAME ROUTE. OPERATIONS PERMITTED 
BETWEEN RAEFORD AND RED SPRINGS OVER HIGHWAY 211 
UNDER LEASE AGREEMENT WITH QUEEN CITY COACH 
COMPANY, AS APPEARS IN ORDER DATED FEBRUARY 8, 1946, 

DOCKET 3394. 

Order Cancelling Certificate 

The records of the Utilities Commission show that the above named 
carrier permitted his insurance policy covering his equipment to expire on 
June 19, 1947, and that said carrier was notified by the Commission on 
June 23, June 30, and July 14, 1947, to file with the Commission public 
liability and property damage Insurance covering his equipment as required 
by law, and having failed to file the same, or communicate with the Commission 
'Vvith respect thereto; and the above-named carrier having failed to operate 



Decisions and Adjustments of Complaints 337 

for a period of thirty (30) days and having been advised under date of 
July 14, 1947, and faihng to communicate with the Commission with respect 
thereto ; 

It Is Hereby Ordered, that said Franchise Certificate be, and the same 
is hereby cancelled, and 

It Is Further Ordered, that a copy of this Order be mailed to C. E. 
Autry, Red Springs, N. C, by receipted, registered mail, a copy to the 
Queen City Coach Company, Charlotte, N. C, and that a copy of this Order 
be delivered to the Department of Motor Vehicles with the request that 
the franchise license tags issued to said carrier be cancelled. 

Issued by order of the Commission this the 29th day of July, 1947. 

North Carolina Utilities Commission 
Charles Z. Flack, Chief Clerk 
Docket No. 4130 



PETITION FOR APPROVAL OF SALE AND TRANSFER OF 

CERTIFICATE NO. 559 BY ROBERT BALLARD, 346 HAYWOOD 

ROAD, WEST ASHEVILLE, N. C, TO JACK BRYSON, 8 LONDON 

ROAD, BILTMORE, N. C 

Order 

A joint petition has been filed with the Commission by Robert Ballard, 
of West Asheville, owner of passenger franchise certificate No. 559, as 
vendor, and Jack Bryson, of Biltmore, as vendee, for approval of the sale 
and transfer by the said vendor to the said vendee of all operating rights 
described in said certificate No. 559. A copy of the sales agreement between 
the parties is attached to the petition. The purchase price involved in said 
sale is $8,500 ; $25 having been paid and $8,475 is to be paid on transfer 
of the property so purchased. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do this under the provisions of G. S. 62-107. That is to 
say, insofar as said sale and transfer of the operating rights under said 
certificate No. 559 are concerned; but that such approval should not be 
construed as a finding, or as any representation by the Commission as to 
the value of certificate No. 559 for rate-making purposes, or for any other 
purpose, but merely to give validity as required by statute to the sale and 
transfer of said certificate. 

It Is, Therefore, Ordered: 

1. That the proposed sale and transfer by Robert Ballard to Jack Bryson 
of franchise certificate No. 559, and all rights, title and Interest therein, 
be approved ; said operating rights being particularly described as follows : 

Exhibit A (1) To transport passengers and their baggage over the following 
routes : 

Exhibit A (2) Between Starnes Cove and Asheville over Deaverview Road, 
Monte Vista Road and Pole Creek Road; thence over Pole 
Creek Road to Robinson's Store; thence to Asheville over 



338 N. C. Utu.ities Commission 

U. S. Highway Nos. 19 and 23, with the following limi- 
tations : 

That the applicant has the right to transport passengers 
originating in or destined to the areas traversed by Deaver- 
view, Starnes Cove, Monte Vista and Pole Creek Roads to 
and from Asheville over U. S. Highway No. 19, but shall 
not solicit potential passengers of the Smoky Mountain 
Stages, Inc., nor hold itself out to transport passengers 
between Asheville and points along the U. S, Highways 
Nos. 19 and 23, and to not engage in intracity service 
in the City of Asheville. (In accordance with Commission's 
order dated June 4, 1943, in Docket No. 2864.) 

2. That franchise certificate No. 559 now in the name of Robert Ballard 
be cancelled and a franchise certificate in lieu thereof be issued to Jack 
Bryson granting to him the operating rights particularly described in paragraph 
1 above. 

3. That this notice shall not become effective until notice to the Commission 
in writing by the vendor and the said vendee that said sale has been 
consummated and that the said vendee is ready to begin operation, provided, 
however, that said operation shall not commence until the said vendee shall 
have first filed with the Commission a description of the equipment to be 
used in said operation together with insurance covering the same, and the 
filing of tariffs and schedules as required by the Commission. 

By Order of the Commission. 

This the 25th day of April, 1947. 

North Carolina Utilities Commission 
R, G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3976 -, ,. • i 



Decisions and Adjustments of Complaints 339 

APPLICATION OF ROBERT BALLARD FOR AUTHORITY TO 
OPERATE AS MOTOR VEHICLE CARRIER OF PASSENGERS FROM 
ASHEVILLE, N. C, OYER HIGHWAYS N. C. 63 AND N. C. 191 TO 
ELECTRIC POWER WATER PLANT BELOW ELK MOUNTAIN, 
WITH CLOSED DOORS; THENCE WITH HIGHWAY N. C 191 TO 
INTERSECTION OF HIGHWAYS NOS. 25 AND 70; THENCE TO 
MONTICELLO ROAD; THENCE OVER MONTICELLO ROAD TO 
HIGHWAYS NOS. 19 AND 23; THENCE WITH CLOSED DOORS 
OVER HIGHWAYS NOS. 19 AND 23 ABOUT 2 MILES TO JUPITER 
ROAD; THENCE OVER JUPITER ROAD TO RED OAK; THENCE 
OVER FLINT HILL ROAD ABOUT 7 MILES TO JUPITER; THENCE 
RETURN TO ASHEVILLE. 



Order 
Before Commissioner Johnson. 

Appearances : For the Applicant : 

J. W. Haynes, Attorney, Asheville, N. C. 

For the Protestants : 

George Pennell, Attorney, Asheville, N. C, 
for Mars Hill-Weaverville Bus Line 

Johnson, Commissioner: 

This cause was set for hearing and heard at the Langren Hotel in 
Asheville, N. C, on the 12th day of August, 1947. Affidavit of Publication 
ot Notice was duly filed. Convenience and necessity having been shown; 

It Is, Therefore, Ordered, That the application in this docket be, and the 
same is hereby, granted; that when the applicant has complied with the rules 
and regulations of the Commission franchise certificate be issued to Robert 
Ballard as follows : 

To transport passengers from Asheville, N. C, over Highways N. C. 63 
and 191 to Electric Power Water Plant below Elk Mountain, with closed 
doors; thence with Highway N. C. 191 to intersection of Highways Nos. 25 
and 70; thence to Monticello Road; thence over Monticello Road to Highways 
Nos. 19 and 23 ; thence with closed doors over Highways Nos. 19 and 23 
about 2 miles to Jupiter Road; thence over Jupiter Road to Red Oak; thence 
over Flint Hill Road about 7 miles to Jupiter; thence return to Asheville. 

This 28th day of November, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4103 



340 N. C. Utilities Commission 

APPLICATION OF WILLIE NORMAN BARKER, D/B/A BARKER 

BUS, TROUTDALE, VIRGINIA, TO TRANSPORT PASSENGERS, 

BAGGAGE AND LIGHT EXPRESS FROM HELTON TO WEST 

JEFFERSON, NORTH CAROLINA AND RETURN. 

Order Dismissing Application 

This cause having been called for hearing at Forsyth County Court House, 
Winston- Salem, North Carolina, on the 25th day of August, 1948, pursuant 
to notice to the applicant and the applicant having failed to appear or otherwise 
communicate with the Commission, 

It Is, Therefore, Ordered^ that said application be, and the same is hereby 
dismissed. 

By Order of the Commission. 

This the 8th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4208 

PETITION FOR APPROVAL OF SALE AND TRANSFER OF 
CERTIFICATE NO. 554 BY FRANK O. EDWARDS, D/B/A BEECH- 
ASHEVILLE BUS LINE, WEAVERVILLE TO V. V. HOLCOMBE, 

WEAVERVILLE. 

Order 

A joint petition has been filed wtih the Commission by Frank O. Edwards, 
d/b/a Beech- Asheville Bus Line, of Weaverville, owner of passenger franchise 
certificate No. 554, as vendor, and V. V. Holcombe, of Weaverville, as vendee, 
for approval of the sale and transfer by the said vendor to the said vendee 
of all operating rights described in said certificate No. 554, and in the sales 
agreement between the parties, a copy of which is attached to the petition. 
The purchase price of all operating rights involved in said sale is $6,000, 
$1,000 being held in escrow by Sam M. Cathey, and the remaining $5,000 is 
to be paid upon transfer of the property so purchased. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do under the provisions of G. S. 62-107; that is to say, 
insofar as the said sale and transfer of the operating rights under said 
certificate No. 554 are concerned, but that such approval should not be construed 
as a finding, or as any representation by the Commission as to the value 
of the property included in said sale for rate-making purposes, or for any 
other purpose, but merely to give validity as required by statute to the sale 
and transfer of said certificate. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by Frank O. Edwards d/b/a 
Beech-Asheville Bus Line, to V. V. Holcombe of franchise certificate No. 
554 and all rights, title and interest therein, be approved, said operating 



Decisions and Adjustments of Complaints 341 

rights being particularly described as follows: From Beech over the Reams 
Creek Road to Weaverville, thence to Asheville over U. S. 19, limited to 
passengers originating in or destined to the community along the Reams 
Creek Road between Beech and Weaverville with the right to transport such 
passengers to and from Asheville and intermediate points along U. S. 19 
between Asheville and Weaverville. 

(2) That franchise certificate No. 554 now in the name of F. O. Edwards, 
d/b/a Beech-Asheville Bus Line, be cancelled and franchise certificate in 
lieu thereof be issued to V. V. Holcombe granting to him the operating 
rights particularly described in paragraph (1) above. 

(3) That this order shall not become effective until notice to the Commission 
has been given in writing by the vendor and the said vendee that said 
sale has been consummated and that the said vendee is ready to begin operations, 
provided, however, that said operations shall not commence until the said vendee 
shall have first filed with the Commission a description of the equipment to 
be used in said operation together with insurance covering the same, and 
shall have filed tariffs and schedules as required by the Commission. 



R. G. Johnson, Commissioner 



By Order of the Commission. 
This 12th day of June, 1947. 

ATTEST; 

Chas. Z. Flack, Chief Clerk 

Docket No. 4022 



APPLICATION OF GENE BURLISON T/A BINGHAM HEIGHTS 

BUS LINE FOR AUTHORITY TO TRANSPORT PASSENGERS OVER 

VARIOUS ROUTES IN THE ASHEVILLE AREA. 

Order Dismissing Application 

This application was called for hearing in Asheville on June 3, 1947, and 
the applicant having failed to appear or advise the Commission of any reason 
for its failure to appear, this application is hereby dismissed. 

This 7th day of July, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 

Docket No. 3884 



APPLICATION OF J. P. BISHOP, BELHAVEN, TO OPERATE A 

MOTOR BUS BETWEEN BELHAVEN, PANTEGO, PLYMOUTH, AND 

NORTH CAROLINA PULP COMPANY. 

Order 

The above application was filed with the Commission October 18, 1946, 
and was set for hearing June 26, 1947. A letter dated June 16, 1947, has 



342 N. C. Utilities Commission 

been received from Mr. M. C. Paul, attorney for the applicant, advising 
that his client desires to withdraw this application ; therefore 

It Is Ordered, that the motion to withdraw is granted and that the case 
is marked closed. 

By Order of the Commission. 
This 9th day of July, 1947. 

Charles Z. Flack, Chief Clerk 
Docket No. 3795 . { 



APPLICATION OF JAMES BOHANON FOR AUTHORITY TO 
TRANSPORT PASSENGERS FROM THE COMMUNITY CENTER ON 
ROANOKE FARMS IN HALIFAX COUNTY TO ROANOKE RAPIDS, 
N. C, VIA DARLINGTON, PIERCE'S CROSS ROADS, DAY'S CROSS 
ROADS AND WELDON AS FOLLOWS: FROM THE COMMUNITY 
CENTER TO HIGHWAY NO. 37 OVER AN UNIMPROVED AND 
UNNUMBERED ROAD; THENCE TO DARLINGTON OVER 
UNPAVED HIGHWAY NO. 37; THENCE TO HIGHWAY NO. 35 
OVER UNPAVED HIGHWAY NO. 37; THENCE TO PIERCE'S CROSS 
ROADS AND TO DAY'S CROSS ROADS OVER UNPAVED HIGHWAY 
NO. 35; THENCE TO WELDON OVER PAVED HIGHWAY NO. 35; 
THENCE TO ROANOKE RAPIDS (WITH CLOSED DOORS) OVER 
PAVED HIGHWAY NO. 158; AND RETURN OVER SAME ROUTE. 

Order 
Before Commissioners Hunter And Johnson. 

Appearances: For Applicant: 

W. Bernard Allsbrook, Roanoke Rapids, N. C. 

For Protestant: 

Arch T. Allen, Raleigh, N. C, for i! 

Carolina Coach Company .1 

Johnson, Commissioner: 

The Applicant proposes to transport passengers from the Community Center 
on Roanoke Farms over an unnumbered county highway to Highway No. 
C. 37; thence a southerly direction to Darlington; thence back over Highway 
N. C. 37 to where said highway intersects N. C. Highway 35; thence over 
N. C. 35 via Pierce's Cross Roads and Day's Cross Roads into Weldon; 
thence with closed doors from Weldon to Roanoke Rapids. 

The Carolina Coach Company filed a protest to the granting of the application 
as originally applied for, but the Applicant was permitted to amend his 
application to operate with closed doors between Weldon and Roanoke Rapids. 
After this amendment was allowed by the Commission the Carolina Coach 
Company withdrew its protest. 

It appears from the evidence that there are several employees of the mills 
around Weldon and Roanoke Rapids who live along the routes applied for 



Decisions anp Adjustments of Complaints 343 

and that this territory is without public transportation. Convenience and 
necessity having been found ; 

It Is, Therefore, Ordered, That the application of James Bohanon as 
amended be, and the same is hereby, granted; and that vv^hen applicant has 
complied with the rules and regulations of the Commission franchise certificate 
be issued to James Bohanon to operate buses for the transportation of passengers 
over the following route : 

From the Community Center on Roanoke Farms in Halifax County over 
an unnumbered highv^ay to vv^here the said unnumbered highway intersects 
N. C. Highway Zl ; thence over N. C. Zl to Darlington, and from Darlington 
in a northerly direction to where N. C. Zl intersects N. C. 35 ; thence over 
N. C. 35 via Pierce's Cross Roads and Day's Cross Roads to Weldon ; 
thence over U. S. 158 from Weldon to Roanoke Rapids, with closed doors 
between Weldon and Roanoke Rapids. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 31st day of May, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3936 



h. grover brigman, barnardsville, n. c, alleged viola- 
tions UNDER SECTION 62-110, GENERAL STATUTES. 

Order 

To Grover Brigman, Barnardsville, North Carolina. 

You are hereby directed and required to appear before the North Carolina 
Utilities Commission on Tuesday, October 21, 1947, at three o'clock p. m. to 
answer charges of alleged violations on your part of General Statutes, Section 
62-110, the alleged charges being that you have invaded the prerogatives, privi- 
leges or rights of a duly licensed franchise carrier by operating on the route of a 
common carrier between Barnardsville and Asheville, N. C, said operations 
being in violation of General Statutes, Section 62. 

It Is, Therefore, Ordered that H. Grover Brigman be, and he is hereby, 
required to appear before the North Carolina Utilities Commission in the 
Hearing Room, located in the State Library Building, Raleigh, North Carolina, 
at three o'clock p. m., on the 21st day of October, 1947, to show cause, if 
any he has, why he should be permitted to continue said operations over said 
route between Barnardsville and Asheville. 

By Order of the Commission. 
This the 9th day of October, 1947. 

Charles Z. Flack, Chief Clerk 
Docket No. 4202 



344 N. C. Utilities Commission 

H. GROVER BRIGMAN, BARNARDSVILLE, N. C; ALLEGED 
VIOLATIONS UNDER SECTION 62-110, GENERAL STATUTES. 

Order 

Before R. G. Johnson, Commissioner 
Appearances: 

For The Protestant: 

Edward L. Loftin, Attorney for 
Barnardsville Bus Line. 

In compliance with Order to Show Cause issued on October 9, 1947, H. 
Grover Brigman of Barnardsville, N. C, appeared before the Commission 
admitting the alleged charges that he has invaded the prerogatives, privileges 
or rights of a duly licensed franchise carrier by operating on the route 
of a common carrier between Barnardsville and Asheville, N. C, said operations 
being in violation of General Statutes, Section 62. The Commission, upon 
said admission being satisfied that the said motor vehicle carrier is not a 
franchise carrier and has been invading the prerogatives, privileges or rights 
of a duly licensed franchise carrier by operating on the route of a common 
carrier, orders the suspension of such practice or practices, conditioned upon 
the revocation of the motor vehicle license of the offending party if he 
shall fail within five days from this date to desist from such offending 
practice or practices. 

It Is, Therefore, Ordered, that H. Grover Brigman be, and he is hereby, 
required to suspend such practice or practices, conditioned upon the revocation 
of motor vehicle license of the said H. Grover Brigman, if he shall fail 
within five days from this date to desist from such offending practice or 
practices. 

By Order of the Commission. 

This the 21st day of October, 1947. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4202 



H. GROVER BRIGMAN, BARNARDSVILLE, N. C; ALLEGED 
VIOLATIONS UNDER SECTION 62-110, GENERAL STATUTES. 

To H. Grover Brigman, Barnardsville, N. C. 

You are hereby directed and required to appear before the North Carolina 
Utilities Commission on Tuesday, February 3, 1948, at 2:00 p. m., to answer 
charges of alleged violations on your part of General Statutes, Section 62-110, 
the alleged charges being "that you have invaded the prerogatives, privileges 
or rights of a duly licensed franchise carrier by operating on the route of 
a common carrier between Barnardsville and Asheville, N. C, said operations 
being in violation of General Statutes, Section 62. It is further alleged that 
you have violated the Order of the Commission dated October 21, 1947, in 
which Order you were required to suspend practice or practices performed 



Decisions and Adjustments of Complaints 345 

by you by operating on the route of a common carrier between Barnardsville 
and Asheville, N. C. which said operations were in violation of General 
Statutes, Section 62, and in which said Order there was a provision that 
if you failed to desist from such ofifending practice or practices, that a 
recommendation would be made for the revocation of the motor vehicle 
license issued you by the Motor Vehicle Department. 

It Is, Therefore, Ordered that H. Grover Brigman be, and he is hereby, 
required to appear before the North Carolina Utilities Commission in the 
Hearing Room located in the State Library Building, Raleigh, N. C, at 
2:00 p. m. on the third day of February, 1948, to show cause, if any he has, 
why he should be permitted to continue said operations over said route between 
Barnardsville and Asheville, and why license issued to him for the operation 
of said motor vehicle should not be cancelled. 

By Order of the Commission. 

This the 21st day of January, 1948, 

Stanley Winborne, Chairman 
ATTEST: 
Chas. Z. Flack, Chief Clerk _ 

Docket No. 4202 



BEFORE THE NORTH CAROLINA UTILITIES COMMISSION 

IN THE MATTER OF 

H. GROVER BRIGMAN, BARNARDSVILLE, N. C. ; ALLEGED 

VIOLATIONS UNDER SECTION 62-110, GENERAL STATUTES. 

Order 

Before R. G. Johnson, Commissioner. 
Appearances : 

For H. Grover Brigman: 

I. C. Crawford, Attorney, Asheville, N. C. 

In compliance with order to show cause issued on January 21, 1948, 
which said order was returnable February 3, 1948, at 2 :00 p. m. and continued 
until Friday, February 6, at 11:00 a. m., at which hearing H. Grover Brigman 
was represented by I. C. Crawford, Attorney. From the reports of Inspectors 
and affidavits filed by other interested parties, it was found that H. Grover 
Brigman had invaded the prerogatives, privileges or rights of a duly licensed 
franchise carrier by operating on the route of a common carrier between 
Barnardsville and Asheville, N. C, said operations being in violation of 
General Statutes, Section 62. The Commission, being satisfied that the said 
motor vehicle carrier is not a franchise carrier and has been invading the 
prerogatives, privileges or rights of a duly licensed franchise carrier by 
operating on the route of a common carrier, orders the suspension of such 
practice or practices and hereby issues an order of revocation to the North 
Carolina Motor Vehicle Department for the revocation of the motor vehicle 
license of H. Grover Brigman, which said order be suspended until such 
time as an Inspector of the North Carolina Utilities Commission finds that 



346 N. C. Utilities Commission 

the said H. Grover Brigman is operating in violation of General Statutes, 
Section 62. 

It Is, Therefore, Ordered that H. Grover Brigman be, and he is hereby, 
required to suspend such practice or practices and that the North Carolina 
Motor \^ehicle Department be issued a notice calling for the revocation of 
motor vehicle license of the said H. Grover Brigman. Said notice to the 
North Carolina Motor Vehicle Department to be suspended until such time 
as an Inspector of the North Carolina Utilities Commission reports violations 
on the part of H. Grover Brigman of General Statutes, Section 62. 

By Order of the Commission. 

This the 9th day of February, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4202 

APPLICATION OF JACK BRYSON FOR FRANCHISE TO OPERATE 
AS MOTOR VEHICLE CARRIER OF PASSENGERS: 1. COMMENCING 
ON WEST CHAPEL ROAD AT THE EDGE OF THE CORPORATE 
LIMITS OF THE CITY OF ASHEVILLE TO HENDERSONVILLE 
ROAD (U. S. HIGHWAY No. 25), THENCE SOUTH ON HENDERSON- 
VILLE ROAD (U. S. HIGHWAY No. 25) FOR APPROXIMATELY 
TWO MILES TO BUENA VISTA. 2. COMMENCE AT WEST CHAPEL 
ROAD AND FOLLOW WEST CHAPEL ROAD TO LINCOLN ROAD, 
TURN LEFT ON SHILOH ROAD TO CARIBOU ROAD, WHICH IS 
BEYOND THE SHILOH COLORED HIGH SCHOOL. 

Order 
Before Commissioner Johnson. 

Appearances: For the Applicant: 

R. R. Williams, Attorney at Law, Asheville, N. C. 
James S. Howell, Attorney at Law, Asheville, N. C. 

For Protestants : 

E. L. Loftin, Attorney at Law, Asheville, N. C, 
for White Transportation Company. 
Sam M. Cathey, Attorney at Law, Asheville, N. C, 
for Arden Stages. 
Johnson, Commissioner: 

This application was called for hearing in Asheville, N. C, at the Langren 
Hotel, on the 29th day of January, 1947, at 2:00 P. M. Notice of publication 
was duly filed but the publication only covered the following routes: 

"From West Chapel Road, terminal point of the corporate limits 
of the City of Asheville, to Buena Vista, over U. S. Highway No. 
25 ; from West Chapel Road, terminal point of the corporate limits 
of the City of Asheville, following West Chapel Road to Lincoln 
Road, turning left on Shiloh Road to Caribou Road, to a point 
beyond the Shiloh Colored High School." 



Decisions and Adjustments of Complaints 347 

The application, therefore, is limited to those routes set out in the 
published notice. 

It appears from the evidence that the White Transportation Company 
is now operating over U. S. Highway 25 between the West Chapel Road and 
the Buena Vista Road. However, the evidence discloses that from the intersection 
of the Busbee Road to Buena Vista the schedules arc in one direction and do 
not give proper service along this road. 

At the present time there is no public transportation over the Lincoln, 
Shiloh or Caribou Roads. However, the White Transportation Company 
does operate over the West Chapel Road. This section is very thickly populated 
and is very much in need of public transportation to and in the City of 
Asheville, N. C. 

Convenience and necessity having been found; 

It Is, Therefore, Ordered, That a franchise certificate be granted to the 
applicant, Jack Bryson, to operate as a motor vehicle carrier of passengers 
over the routes hereinafter set out, and that franchise certificate be issued 
when the applicant has complied with the rules and regulations of this Commis- 
sion to cover the following routes: 

1. From West Chapel Road, terminal point of the corporate limits of 
the City of Asheville, to Buena Vista, over U. S. Highway No. 25. 

2. From West Chapel Road, terminal point of the corporate limits of 
the City of Asheville, following West Chapel Road to Lincoln Road; thence 
on Lincoln Road to Shiloh Road, turning left on Shiloh Road to Caribou 
Road; thence on Caribou Road to a point beyond the Shiloh Colored High 
School. 

This 21st day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3785 



APPLICATION OF JACK BRYSON FOR AUTHORITY TO 

TRANSPORT PASSENGERS FROM BUENA VISTA STATION VIA 

ROCK HILL ROAD TO LESLIE ROGERS' STORE. 

Order 
Appearances : 

For the Applicant : 

James S. Howell, Attorney, Asheville, North Carolina 

For Protestant. 

Lorena Graham Quinn, d/b/a Arden Stages. 

Sam M. Cathey, Attorney, Asheville, North Carolina 

Hunter, Commissioner : This application heard in Asheville on June 3, 
1947, is for an extension of the applicant's existing operating rights in 



348 N. C. Utilities Commission 

Buncombe County to include an unnumbered county road from Buena Vista 
Station, the terminus of the applicant's existing route, over an unnumbered 
road known as the Rock Hill Road from Buena Vista Station crossing 
the Sweeten Creek Road to Leslie Rogers' Store located in the community 
known as the Petersburg section. The proposed route crosses the franchise 
route of Arden Stages at a point about midway between Buena Vista Station 
and Rogers' Store. The application, if granted, will result in some competition 
with Arden Stages between the intersection of the Rock Hill Road with 
the Sweeten Creek Road and Asheville, and for that reason the application 
was strongly opposed by Arden Stages. 

A large number of witnesses appeared at the hearing in support of the 
application. Their testimony was to the effect that the proposed route traverses 
a densely populated section that needs bus service for the transportation of 
school children to and from school, for the transportation of employees to 
and from Asheville and to and from other points not served by Arden 
Stages. The testimony was to the effect that the existing service of Arden 
Stages along the Sweeten Creek Road does not and cannot provide the 
service proposed by the applicant. 

Almost every franchise involves some competition at some point with other 
carriers. In the instant case, public convenience and necessity was clearly 
shown for the proposed service and any diversion of traffic from Arden 
Stages does not appear to be sufficient to materially help or hurt either carrier. 

It Is, Therefore, Ordered: 

1. That the application of Jack Bryson for an extension of his existing 
operating rights to include from Buena Vista Station via Rock Hill Road to 
Leslie Roger's Store and return be and the same; is hereby granted. 

2. That said applicant's franchise certificate be amended to include the 
route described in paragraph 1 when the applicant shall have filed with the 
Commission his schedules over said route, published a proper tariff and filed 
insurance covering his equipment to be operated over said route. 

By Order of the Commission. 
This 7th day of August, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3904 

C. & L. BUS LINE, WINDSOR, TO OPERATE AS MOTOR VEHICLE 
PASSENGER CARRIER FROM WINDSOR VIA N. C. 308 TO 
LEWISTON, KELFORD, ROXOBEL, AND FROM INTERSECTION 
OF 308 WITH U. S. 258 INTO RICH SQUARE; FROM LEWISTON 
TO THE INTERSECTION OF N. C 305 AT CONNARITSA; THENCE 
VIA 305 INTO ORLANDO ; THENCE VIA N. C. 305 INTO WINDSOR. 

Order 

The above application was filed with the Commission February 19, 1947, 
and was set for hearing in Raleigh. Wednesday, 10 a. m., June 18, 1947, 



Decisions and Adjustments of Complaints 349 

and later changed to Thursday, May 29, 1947. May 14, 1947, a letter was 
received from Mr. J. A. Pritchett, attorney for the applicant, advising that 
his clients had instructed him to withdraw the above application. 

It Is, Therefore, Ordered, that motion to withdraw is granted and that 
the case is marked closed. 

By Order of the Commission. 
This the 9th day of July, 1947. 

Charles Z. Flack, Chief Clerk 
Docket No. 3922 



PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
CAROLINA COACH COMPANY AND CONCORD TRANSIT LINES, 
INC., FOR THE PRIVILEGE OF OPERATING SOUTH OF THE CITY 
OF CONCORD OVER HIGHWAY NO. 29 FROM THE JUNCTION OF 
ROCKWELL ROAD WITH SAID HIGHWAY, TO TALBERT'S 
GROCERY STORE ON SAID HIGHWAY, WHICH SAID TALBERT'S 
GROCERY STORE IS SITUATED ABOUT .6 OF A MILE ON SAID 
HIGHWAY NO. 29, SOUTH OF THE JUNCTION OF ROCKWELL 
ROAD WITH SAID HIGHWAY. 

Order 

A lease Agreement between Carolina Coach Company, as lessor, and the 
Concord Transit Lines, Inc., Concord, North Carolina, as lessee, dated the 
26th day of July, 1948, has been filed with the Commission for approval, 
for the right to engage in the transportation of passengers over the franchise 
route of the lessor as particularly described in Paragraph One of the order 
herein. Upon consideration of said Lease Agreement and Petition attached 
thereto, the Commission is of the opinion that the same should be approved. 

It Is, Therefore, Ordered; 

1. That the operating rights described in said Lease Agreement be approved, 
and the Concord Transit Lines, Inc., is hereby authorized to operate as lessee 
of the Carolina Coach Company in the transportation of passengers over the 
following route : 

(a) South of Concord, over Highway No. 29 from the junction of Rockwell 
Road with said Highway, to Talbert's Grocery Store on said Highway, which 
said Talbert's Grocery Store is situated about .6 of a mile on said Highway 
No. 29 South of the junction of Rockwell Road with said Highway. 

By Order of the Commission. 
This 28th day of July, 1948. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 



R. G. Johnson, Commissioner 



Docket No. 2507 



350 • N. C. Utilities Commission 

OPERATING AGREEMENT BETWEEN CAROLINA COACH CO., 
CAROLINA COACH COMPANY OF VIRGINIA, AND VIRGINIA 
STAGE LINES, INCORPORATED, PROVIDING FOR THROUGH BUS 
SERVICE BETWEEN POINTS IN NORTH CAROLINA AND 
WASHINGTON, D. C, NORFOLK, VA., DANVILLE, VA, STAUNTON, 
VA., NEW YORK, N. Y., AND LYNCHBURG, VA., AND RICHMOND, 

VA. 

Order 

It appearing to the Commission that Carolina Coach Company, Carolina 
Coach Company of Virginia, and Virginia Stage Lines, Incorporated, under 
date of January 25, 1948, have entered into a supplemental agreement 
providing for the operation of through buses over their respective franchise 
routes as set out in the supplemental agreement, a copy of which has been 
filed with the Commission. This supplemental order modifies and supplements 
the existing agreement between the parties of date March 27, 1947, and 
the supplemental agreement thereto of date June 30, 1947. 

Upon consideration of the same, the Commission is of the opinion that 
the operation of buses as contemplated by said agreement will greatly conven- 
ience the travelling public and that the said agreement should be approved. 
And it is so ordered. 

By Order of the Commission. 

This the 21st day of February, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3465 

OPERATING AGREEMENT BETWEEN CAROLINA COACH 
COMPANY, CAROLINA COACH COMPANY OF VIRGINIA, AND 
VIRGINIA STAGE LINES, INC., PROVIDING FOR THROUGH BUS 
SERVICE BETWEEN POINTS IN NORTH CAROLINA AND 
RICHMOND, VIRGINIA; NORFOLK, VIRGINIA; PETERSBURG, 
VIRGINIA; SUFFOLK, VIRGINIA; WASHINGTON, D. C. ; LYNCH- 
BURG, VIRGINIA; STAUNTON, VIRGINIA; NEW YORK, N. Y., AND 
PITTSBURGH, PENNSYLVANIA. 

Order 

It Appearing to the Commission that Carolina Coach Company, Carolina 
Coach Company of Virginia, and Virginia Stage Lines, Inc., under date of 
August 16, 1948, entered into an agreement providing for operation of 
through buses over their respective franchise routes as set out in said agreement, 
a copy of which has been filed with the Commission. The agreement supercedes 
all other through service agreements entered into between Carolina Coach 
Company, Carolina Coach Company of Virginia, and Virginia Stage Lines, 
Inc. 

Upon consideration of the same the Commission is of the opinion that the 
operation of buses as contemplated by said agreement will greatly serve the 



Decisions and Adjustments of Complaints 351 

travelling public and that the said agreement should be approved, and It Is 
So Ordered. 

By Order of the Commission. 

This 1st day of November, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3465 -_ . ' ' 



LEASE AGREEMENT BETWEEN CAROLINA COACH COMPANY, 

NORFOLK SOUTHERN BUS CORPORATION AND VIRGINIA DARE 

TRANSPORTATION COMPANY, INC., RELATING TO SERVICE 

BETWEEN CHARLOTTE, N. C, AND MANTEO, N. C. 

Order 

The Carolina Coach Company, Norfolk Southern Bus Corporation and 
Virginia Dare Transportation Company entered into an agreement dated May 
31, 1946, copy of which was filed with the Commission providing for 
through service and the transportation of passengers between Charlotte and 
Manteo during the time of the holding of "The Lost Colony" pageant at 
Manteo, or from about July 1, 1946, to September 1, 1946, which was approved 
by the Commission on July 3, 1946. 

Now comes the above parties by letter and request dated July 21, 1947, 
agreeing to a continuation of the contract dated May 31, 1946, and seeking 
approval of this Commission for such contract substituting "1947" for "1946". 
It appears to the Commission that the services rendered by said Lease 
Agreement is needed and is not inconsistent with the public interest and 
should be approved. 

It Is, Therefore, Ordered, that said Agreement between the Carolina 
Coach Company, Norfolk Southern Bus Corporation and Virginia Dare Trans- 
portation Company, Inc., dated the 31st day of May, 1946, providing for 
an additional period of one year substituting the year 1947 for the year 
1946, be, and the same is, hereby approved, subject to the continuing right 
of the Commission to act in the premises as the public interest may require. 

This the 29th day of July, 1947. 

North Carolina Utilities Commission 
Charles Z. Flack, Chief Clerk 
Docket No. 3678 



352 N. C. Utilities Commission 

APPLICATION OF CAROLINA COACH COMPANY, RALEIGH, N. C, 
TO TRANSPORT PASSENGERS, EXPRESS, MAIL, NEWSPAPERS 
AND/OR BAGGAGE BETWEEN RALEIGH, N. C, AND HOLLY 
SPRINGS, N. C, VIA THE RHAMKATTE ROAD FROM RALEIGH 
TO A SETTLEMENT KNOWN AS MACEDONIA; THENCE OVER 

AN UNNUMBERED COUNTY ROAD TO HOLLY SPRINGS. 
APPLICATION OF DURHAM-DUNN BUS COMPANY, FUQUAY 
SPRINGS, N. C, TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 
MAIL AND LIGHT EXPRESS OVER HARD SURFACE COUNTY 

ROAD BETWEEN HOLLY SPRINGS AND RALEIGH, VIA 
MACEDONIA AND SWIFT CREEK SCHOOL. 

Order 

Before The Full Commission. 

Appearances: For the Carolina Coach Company: 

Arch T. Allen, Raleigh, North Carolina 
William B. Umstead, Durham, North Carolina 
Robert A. Cotton, Fuquay Springs, North Carolina 
For the Durham-Dunn Bus Company: 

Bunn and Arendell, Raleigh, North Carolina 
Willis Smith, Raleigh, North Carolina 
N. F. Ransdell, Varina, North Carolina 

Johnson, Commissioner: 

The Applicants, Carolina Coach Company and Durham-Dunn Bus Company, 
seek authority to transport passengers, baggage, mail and light express over 
the same route; i. e., from Raleigh to Holly Springs via Macedonia and 
Swift Creek School over an unnumbered hard surfaced county road. Without 
objection the two dockets were consolidated for hearing. 

The Applicant, Carolina Coach Company, at the present time is operating 
from Raleigh over U. S. Highway 15-A to Fuquay Springs; thence over 
N. C. Highway 55 to Holly Springs. The Applicant, Durham-Dunn Bus 
Company, is operating from Fuquay Springs to Durham over N. C. Highway 
55 via Holly Springs. All of the routes covered in these applications lies 
within Wake County. From the evidence offered the area between Raleigh 
and Holly Springs via Macedonia is without public service in transportation. 
The only points along this route being served are Holly Springs and Raleigh. 
The Commission finds that a great number of people living along this route 
are employed in and around Raleigh, and there is urgent need for transportation 
for these employees. 

The contention of the Carolina Coach Company is that a through service 
from Raleigh via Holly Springs to Fayetteville through Fuquay Springs 
would render a better service to this area than the service proposed by 
Durham-Dunn Bus Company, which is a local service between Holly Springs 
and Raleigh. The Commission is of the opinion that a local service which 
would originate in Holly Springs each morning would be more beneficial 
to the people living along this route than through service. A purely local 
service would take into consideration the transportation needs of the people 



Decisions and Adjustments of Complaints 353 

to be served along this route more than a through service. Convenience and 
necessity having been found; 

It Is, Therefore, Ordered : 

1. That the appHcation of Durham-Dunn Bus Company for authority to 
transport passengers, baggage, Hght express and mail between Holly Springs 
and Raleigh via Macedonia and Swift Creek School over an unnumbered 
hard surfaced county highway be, and the same is hereby, granted. 

2. That the application of Carolina Coach Company to operate over an 
unnumbered hard surfaced county road from Holly Springs to Raleigh via 
Macedonia be, and the same is hereby, denied. 

3. That when the applicant has complied with all rules and regulations 
of the Commission the franchise certificate of Durham-Dunn Bus Company 
be amended as follows : 

To transport passengers, baggage, mail and light express from Holly Springs 
to Raleigh via Macedonia and Swift Creek School over an unnumbered 
hard surfaced county road. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 31st day of May, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Dockets Nos. 3744 & 3789 



APPLICATION OF CAROLINA COACH COMPANY, RALEIGH, N. C, 
TO TRANSPORT PASSENGERS, EXPRESS, MAIL, NEWSPAPERS 
AND/OR BAGGAGE BETWEEN RALEIGH, N. C, AND HOLLY 
SPRINGS, N. C, VIA THE RHAMKATTE ROAD FROM RALEIGH 
TO A SETTLEMENT KNOWN AS MACEDONIA; THENCE OVER 

AN UNNUMBERED COUNTY ROAD TO HOLLY SPRINGS. 
APPLICATION OF DURHAM-DUNN BUS COMPANY, FUQUAY 
SPRINGS, N. C, TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 
MAIL AND LIGHT EXPRESS OVER HARD SURFACE COUNTY 

ROAD BETWEEN HOLLY SPRINGS AND RALEIGH, VIA 
MACEDONIA AND SWIFT CREEK SCHOOL. 

Order Overruling Exceptions 

This Matter again comes before the Commission upon Exceptions filed, 
June 6, 1947, by Arch T. Allen and Robert A. Gotten, attorneys for Carolina 
Coach Company, to the order of this Commission, dated 31st day of May, 
1947, in which order the Commission granted an application to the Durham- 
Dunn Bus Company, Fuquay Springs, N. C, Docket No. 3789, to operate 
passenger buses from Holly Springs to Raleigh over the Rhamkatte Road 
by way of Macedonia and Swift Creek School, and denied the application 
of the Carolina Coach Company (Docket No. 3744) for a franchise from 
Holly Springs to Raleigh over the same road. The Exceptions filed by the 



354 N. C. Utilities Commission 

Carolina Coach Company are to the order of the Commission denying its 
appHcation for franchise. 

The Commission has carefully considered each and all of said Exceptions 
and find nothing therein that had not been considered by this Commission 
at the time its order was entered on the 31st day of May, 1947. The only 
question involved in this matter was whether the Commission would grant 
a franchise to the Durhaui-Dunn Bus Company or the Carolina Coach Company, 
it being admitted that there was not sufficient business for both operations. 
The Commission decided in favor of the Durham-Dunn Bus Company. 

Wherefore, It Is Ordered, that each and all of said Exceptions are hereby 
disallowed, overruled and denied. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This the 9th day of June, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Dockets Nos. 3744 & 3789 



APPLICATION OF CAROLINA COACH COMPANY, RALEIGH, N. C, 
TO TRANSPORT PASSENGERS, EXPRESS, MAIL, NEWSPAPERS 
AND/OR BAGGAGE BETWEEN RALEIGH, N. C, AND HOLLY 
SPRINGS, N. C, VIA THE RHAMKATTE ROAD FROM RALEIGH 
TO A SETTLEMENT KNOWN AS MACEDONIA; THENCE OVER 

AN UNNUMBERED COUNTY ROAD TO HOLLY SPRINGS. 

APPLICATION OF DURHAM-DUNN BUS COMPANY, FUQUAY 

SPRINGS, N. C, TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 

MAIL AND LIGHT EXPRESS OVER HARD SURFACE COUNTY 

ROAD BETWEEN HOLLY SPRINGS AND RALEIGH, VIA 

MACEDONIA AND SWIFT CREEK SCHOOL. 

Order Denying Motion For Stay Of Execution 

The above matter now comes before the Commission upon a motion filed 
by Messrs. Arch T. Allen and Robert A. Gotten, attorneys for the Carolina 
Coach Company, on June 6, 1947, asking that the order of this Commission, 
of May 31, 1947, be stayed and the Durham-Dunn Bus Company be not 
allowed to begin the operation of buses from Holly Springs to Raleigh 
until the Exceptions filed by the Carolina Coach Company on June 6, 1947, 
have been passed upon and a final order entered by this Commission. 

The Commission has entered an order overruling each and all Exceptions 
filed by the Carolina Coach Company in this case, and under the decision 
of the Supreme Court of North Carolina in State of North Carolina on 
Relation of the North Carolina Utilities Commission vs. Norfolk- Southern 
Railway Company, 224 N. C. at page 762, the Commission is without authority 
to enter any further order in the matter, as the statute prescribes the method 
of procedure when Exceptions have been overruled, by providing for an 
appeal to the Superior Court. Furthermore G. S. 60-20, cited by the Carolina 



Decisions and Adjustments of Complaints 355 

Coach Company in its motion, contains nothing that would require the 
Commission to stay the effectiveness of an order authorizing the operation 
of buses pending an appeal. - . 

Wherefore, The Motion is denied and dismissed. 

This the 10th day of June, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Dockets Nos. 3744 & 3789 . ' 



APPLICATION OF CAROLINA COACH COMPANY, RALEIGH, N. C, 
TO TRANSPORT PASSENGERS, EXPRESS, MAIL NEWSPAPERS, 
AND/OR BAGGAGE BETWEEN RALEIGH, N. C AND HOLLY 
SPRINGS, N. C. VIA THE RHAMKATTE ROAD FROM RALEIGH 
TO A SETTLEMENT KNOWN AS MACEDONIA, THENCE OVER 
AN UNNUMBERED COUNTY ROAD TO HOLLY SPRINGS. 

APPLICATION OF THE DURHAM-DUNN BUS COMPANY, FUQUAY 

SPRINGS, N. C, TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 

MAIL AND LIGHT EXPRESS OVER HARD SURFACE COUNTY 

ROAD BETWEEN HOLLY SPRINGS AND RALEIGH, VIA 

MACEDONIA AND SWIFT CREEK SCHOOL. 



Supplemental Orde-r 

Whereas the Commission entered an Order in the above captioned dockets 
on May 31, 1947, granting the application of the Durham-Dunn Bus Company 
to transport passengers, baggage, mail and light express over the hard 
surface road between Holly Springs and Raleigh by v/ay of Macedonia and 
Swift Creek School, which said road is known as the Rhamkatte Road, 
and denied in said Order the application of the Carolina Coach Company to 
operate buses over the same road ; and whereas on the 10th day of June, 
1947, the Commission overruled, denied and disallowed the Exceptions filed 
by the Carolina Coach Company on the 6th day of; June, 1947. 

It Is, Now, Therefore, Ordered, that the Carolina Coach Company permit 
immediately the buses of the Durham-Dunn Bus Company to enter the Union 
Bus Station in the city of Raleigh upon such terms as other bus companies 
enter said terminal, and the Carolina Coach Company is directed to notify 
those in charge of the bus station to receive and put on sale the tickets of 
the Durham-Dunn Bus Company and to receive and use the baggage checks 
of the Durham-Dunn Bus Company to be used on baggage of passengers 



356 N. C. Utilities Commission 

holding tickets over the Durham-Dunn Bus Company leaving the Raleigh 
Union Bus Station. 

This the 12th day of June, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Dockets Nos. 3744 & 3789 

APPLICATION OF CAROLINA COACH COMPANY, OF RALEIGH, 
TO OPERATE PASSENGER SERVICE BETWEEN RALEIGH AND 
WENDELL VIA "POOLE ROAD" OR THE "OLD WENDELL ROAD." 

Order 
Appearances 

Arch T. Allen, of Raleigh, N. C. 
W. B. Umstead, of Durham, N. C. 

For the Applicant 
No Protestant 
Winborne, Chairman 

This case was set for hearing and was heard by Commissioners Hunter 
and Winborne in Raleigh, on December 12, 1946. Publication of the notice of 
the hearing was duly made and affidavit of publication thereof was filed 
with the Commission. 

The Carolina Coach Company asked for a franchise certificate to operate 
passenger motor vehicles between Raleigh and Wendell over what is known 
as the "Poole Road". The Carolina Coach Company at the present time 
holds a certificate over Highway 64 from Raleigh to Wendell, which practically 
parallels the "Poole Road". The "Poole Road" was paved just before the 
war and runs through a very densely populated section of Wake County. 
For a distance of from nine to ten miles out of Raleigh, according to the 
evidence, many new homes have been built and others will be built as 
soon as building material is available. Within said distance of nine or ten 
miles from Raleigh some member of nearly every family works in Raleigh 
and commute daily. 

Mrs. Underwood testified that her husband worked in Raleigh and that 
he used the car, which meant that there was no way for her to get 
to Raleigh to do her shopping or to see the doctor unless she could get 
some neighbor to bring her, and that most of her neighbors were in the 
same predicament as herself. She stated that they needed badly a schedule 
into Raleigh in the morning, and a two-way schedule in the middle of the 
day, and a return schedule from Raleigh in the late afternoon. 

Other witnesses were examined and testified to the need for the service 
not only within the distance of nine or ten miles from Raleigh, but all 
the way to Wendell. Other witnesses were asked the general question if 



Decisions and Adjustments of Complaints 357 

their testimony would be substantially the same as the witnesses who had 
been examined, and they all replied in the affirmative. 

Upon a consideration of the testimony the Commission is of the opinion 
and finds as a fact that public convenience and necessity has been shown, 
and 

It Is, Therefore, Ordered, that upon a full compliance with the rules 
and regulations of the Commission that a franchise certificate be issued to 
the Carolina Coach Company to operate buses for the transportation of 
passengers in accordance with the schedules filed with this Commission over 
an unnumbered highway between Raleigh and Wendell known as the "Poole 
Road" or the "Old Wendell Road." 



This the 19th day of December, 1946. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3745 



APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER 
BETWEEN LEXINGTON AND JUNCTION OF N. C. HIGHWAY 
150 AND U. S. HIGHWAYS 29-52-70 VIA OLD U. S. HIGHWAY 
29 AND N. C HIGHWAY 150. 

Order 

Appearances: " ' 

Honorable William B. Umstead, Durham, N. C. 
Honorable Arch T. Allen, Raleigh, N. C. 

For Applicant 
No Protestant. 

Winborne, Chairman 

In this matter the Carolina Coach Company asked that it be given a 
franchise certificate to transport passengers over the old U. S. 29 and N. C. 
150, which franchise it once had, but which was abandoned when the highway 
between Salisbury and Lexington was straightened and the Carolina Coach 
Company was given a franchise over the new highway. 

Several witnesses testified that there were only a few houses on the 
new road and all of the homes were situate on the old Highway which is 
paved, but over which the Carolina Coach Company abandoned its operation 
several years ago. One of the witnesses testified that she lived about half 
way between the intersections of the new and old roads and that in order 
for her to get a bus she had to walk one and one-half miles to the intersection 
of the old and new roads, and this she did frequently. Testimony was 
also offered by several witnesses stating that there was great need for 
some service over the old road and that they desired sonie of the schedule? 



358 N. C. Utilities Commission 

which are now routed over the new road to be restored to the old road. 
This the applicant proposed to do if the franchise were granted. 

Upon a consideration of the testimony, the Commission is fully convinced 
that there is need for the service and finds as a fact that public convenience 
and necessity has been established. 

Wherefore, It Is Ordered, that the Carolina Coach Company upon full 
compliance with the rules and regulations of this Commission be granted 
a franchise certificate to restore service, according to the schedules filed, over 
the old U. S. 29 and N. C. 150 between Lexington and Junction of N. C. 
150 and U. S. 29-52-70. 

This the 19th day of December, 1946. 

Stanley Winborne, Chairman 



Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



-ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3747 



APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO TRANSPORT PASSENGERS AND EXPRESS, MAIL, 
NEWSPAPERS, AND/OR BAGGAGE IN THE SAME VEHICLE WITH 
PASSENGERS OVER THE FOLLOWING ROUTES: (1) FROM 
SPRING HOPE, N. C, VIA N. C. 581 TO JUNCTION OF 
UNNUMBERED COUNTY ROAD, AND THEN OVER THIS COUNTY 
ROAD VIA TAYLORS CROSS ROADS, SANDY CROSS, LANGLEYS 
STORE, AND EASONBURG TO ROCKY MOUNT, N. C; (2) FROM 
STRICKLAND CROSS ROADS TO TAYLORS CROSS ROADS VIA 
UNNUMBERED COUNTY ROAD; (3) FROM TARBORO, N. C, VIA 
UNNUMBERED COUNTY ROAD TO THE JUNCTION OF THIS ROAD 
WITH N. C. 43 JUST SOUTH OF ROCKY MOUNT, N. C, VIA N. C. 

PRISON CAMP. 

Order 

Before Commissioners Winborne and Johnson. 

Appearances : For the Applicant : 

Arch T. Allen, Raleigh, N. C. 

For Protestants : 
None. 
Johnson, Commissioner: 

This cause came on for hearing in the Commission's Hearing Room in 
Raleigh, N. C, on the 18th day of December, 1946. The applicant seeks 
authority to transport passengers and express, mail, newspapers and/or baggage 
in the same vehicle with passengers over the routes set out in the caption 
hereof. At the present time the territory which the application seeks to 
serve does not have public transportation. Several witnesses were offered 



Decisions and Adjustments of Complaints 359 

by the applicant to show convenience and necessity. Convenience and necessity 
having been found, 

It Is, Therefore, Ordered, That the appHcation of CaroHna Coach Company 
be, and the same is hereby granted; that when the applicant has complied 
with the rules and regulations of this Commission, franchise certificate of 
Carolina Coach Company be amended by adding the following routes: 

(1) From Spring Hope, N. C, via N. C. 581 to junction of unnumbered 
county road, and then over this county road via Taylors Cross Roads, Sandy 
Cross, Langleys Store, and Easonburg to Rocky Mount, N. C. ; (2) From 
Strickland Cross Roads to Taylors Cross Roads via unnumbered county road; 
(3) From Tarboro, N. C, via unnumbered county road to the junction of 
this road with N. C. 43 just south of Rocky Mount, N. C, via N. C. 
Prison Camp. 

This 20th day of January, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3837 

PETITION BY CAROLINA COACH COMPANY FOR TEMPORARY 
SUSPENSION OF SERVICES BETWEEN WILMINGTON, N. C. AND 
JACKSONVILLE VIA BURGAW, N. C, UNTIL SUCH TIME AS THE 
HIGHWAY BETWEEN JACKSONVILLE AND BURGAW IS IN 
SUITABLE CONDITION FOR THE OPERATION OF REGULAR 
SCHEDULED BUS SERVICE THEREOVER. 

Order 

It appears from a petition dated October 14, 1947, and filed with the 
Commission on said date that the N. C. Highway No. 53 between Burgaw 
and Jacksonville is unsuitable and unsafe for the operation of regular scheduled 
bus service. That in wet weather said road is virtually impassable. That 
information furnished to the effect that the N. C. State Highway and Public 
Works Commission proposes to let contracts for surfacing of said highway 
in the early part of 1948. 

Upon consideration of said petition, the same is hereby approved, and said 
Carolina Coach Company is authorized to suspend temporarily services between 
Wilmington and Jacksonville, via Burgaw, until such time as the highway 
between Jacksonville and Burgaw is suitable for the operation of regular 
scheduled bus service thereover. 

By Order of the Commission. 

This the 15th day of October, 1947. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3871 



360 N. C. Utilities Commission 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 

CAROLINA COACH COMPANY AND M. A. GABRIEL, D/B/A 

GABRIEL BUS COMPANY, RELATING TO BUS OPERATION 

BETWEEN LANDIS AND KANNAPOLIS. 

Approval Of Agreement 

A lease agreement, dated April 10, 1947, between Carolina Coach Company, 
as lessor, and M. A. Gabriel, d/b/a Gabriel Bus Company, of Mooresville, 
as lessee, has been filed with the Commission for approval wherein it appears 
that said lessee has purchased the operating rights of W. Harry Keeter, d/b/a 
Keeter's Bus Company, between Mooresville and Landis, and that the purpose 
of the lease agreement herein is to authorize the said lessee to operate over 
the franchise route of the said lessor from Landis to Kannapolis over U. S. 
Highway 29 for the purpose of transporting workers to and from Kannapolis 
under arrangement similar to that heretofore agreed upon with Keeter's Bus 
Company and under certain limitations as to the right to pick up and 
discharge potential passengers of the Carolina Coach Company in and around 
Landis. It appears that said agreement is in the public interest, and the same 
is hereby approved. 

By Order of the Commission. 
This the 16th day of April, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3968 



PETITION FOR APPROVAL OF AGREEMENT BETWEEN CAROLINA 
COACH COMPANY AND H. W. HUNTER RELATING TO 
OPERATIONS IN MECKLENBURG AND CABARRUS COUNTIES. 

Order 

A lease agreement between Carolina Coach Company, as lessor, and H. W. 
Hunter of Charlotte, d/b/a The Carolina Transit Company, as lessee, dated 
April 25, 1947, has been filed with the Commission for approval, said agreement 
providing, among other things, for a lease by the said lessor to the said 
lessee of three 29 passenger Buick Flexible 1940 buses, together with the right 
to engage in the transportation of passengers over the franchise routes of 
tlie said lessor as particularly described in paragraph 1 of the order herein. 

Upon consideration of said lease agreement and the petition thereto attached, 
the Commission is of the opinion that the same should be approved. 

It Is, Therefore, Ordered: 

1. That the proposed lease of equipment and operating rights described in 
said lease agreement be approved, and the said H. W. Hunter, d/b/a The 
Carolina Transit Company is hereby authorized to operate as lessee of the 



II 



Decisions and Adjustments of Complaints 361 

Carolina Coach Company in the transportation of passengers over the 
following routes and between the following points : 
Hickory Grove operation; to wit, 

(a) Charlotte to Newell via road known as "The Plaza Road." 

(b) Lemmon's Store to N. C. Highway No. 27 via County 
road from Lemmon's Store to Hickory Grove and thence 
via Amity Road to N. C. Highway No. 27, 

(c) Hickory Grove to Alexander's Store via unnumbered 

county road. 

(d) Charlotte to junction of Amity Road with N. C. Highway 

No. 27 via N. C. Highway No. 27. 
Derita operation ; to wit, 

(a) From Charlotte to Concord over Mecklenburg 

County Highway No. 11 from Charlotte via 
Derita and Boyd Alexander's Store to a point 
near the Cabarrus County Line, thence over 
an unnumbered road via Walker's Store and 
Shakespear Harris Place, thence via Popular 
Tent Road to Concord. 

(b) Derita to Sugar Creek Church via County High- 
way No. 116. 

(c) Sugar Creek Church to Charlotte via U. S. High- 

way 29. 

2. That the schedules and tariff of the Carolina Coach Company now on 
file with the Commission be adopted and used as the schedules and tariff 
of H. W. Hunter until changed with the consent and approval of the 
Commission. 

3. That operations under said lease agreement shall not commence until 
the said lessee shall have filed with tlie Commission insurance covering 
the equipment to be used in said operations. 

By Order of the Commission. 
This the 29th day of April, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Cotnmissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3978 

PETITION FOR APPROVAL OF LEASE AGREEMENT AND 
SUPPLEMENTAL AGREEMENT BETWEEN CAROLINA COACH 
COMPANY AND H. W. HUNTER, D/B/A THE CAROLINA TRANSIT 
COMPANY, RELATING TO OPERATIONS IN MECKLENBURG AND 
CABARRUS COUNTIES. 

Order 

The Carolina Coach Company, as lessor, and H. W. Hunter, d/b^a The 
Carolina Transit Company, as lessee, have entered into a supplemental agreement 
dated July 13, 1948, extending the terms and conditions contained in the 



362 N. C. Utilities Commission 

agreement dated April 25, 1947, a copy of which has been filed with the 
Commission, by the terms of which said supplemental agreement the said 
lessee will be authorized to perform intrastate service over the following 
routes and between the following points: 
Hickory Grove operation; to wit, 

(a) Charlotte to Newell via road known as "The Plaza 
Road." 

(b) Lemmon's Store to N. C. Highway No. 27 via County 
road from Lemmon's Store to Hickory Grove and 
thence via Amity Road to N. C. Highway No. 27. 

(c) Hickory Grove to Alexander's Store via unnumbered 

county road. 

(d) Charlotte to junction of Amity Road with N. C. High- 
way No. 27 via N. C. Highway No. 27. 

Derita operation; to wit, 

(a) From Charlotte to Concord over Mecklenburg County 

Highway No. 11 from Charlotte via Derita and Boyd 
Alexander's Store to a point near the Cabarrus County 
Line, thence over an unnumbered road via Walker's 
Store and Shakespear Harris Place, thence via Popular 
Tent Road to Concord. 

(b) Derita to Sugar Creek Church via County Highway 

No. 116. 

(c) Sugar Creek Church to Charlotte via U. S. Highway 29. 

Upon consideration of said supplemental agreement, the Commission is of 
the opinion that the same should be approved, subject to the continuing 
right of the Commission to act in the premises as the public interest may 
require. 

By Order of the Commission. 

This the 20th day of August, 1948. 

Fred C. Hunter, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3978 



PETITION FOR APPROVAL OF AGREEMENT BETWEEN CAROLINA 
COACH COMPANY, OF RALEIGH, AND SANFORD BUS LINE, INC., 
OF SANFORD, RELATING TO LEASE OF CERTAIN FRANCHISE 
RIGHTS AND MOTOR EQUIPMENT BETWEEN SANFORD AND 
LILLINGTON, AND BETWEEN LILLINGTON AND SMITHFIELD. 

Order 

It appears from a petition dated May 13, 1947, and filed with the Commission 
May 14, 1947, that Carolina Coach Company, Raleigh, and Sanford Bus Line, 
Inc., Sanford, have entered into an agreement, a copy of which is attached 
to the petition, whereby said Sanford Bus Line, Inc., is authorized, subject 



Decisions and Adjustments of Complaints 363 

to approval of the Commission, to operate over the franchise routes of the 
first-named carrier as follows: 

1. Between Sanford and Lillington via Jonesboro over U. S. Highway 
No. 421. 

2. Between Lillington and Smithfield via Angier over N. C. Highway- 
No. 210. 

The agreement also provides for the lease of two 25-passenger Chevrolet 
flexible buses to the lessee. 

Upon consideration of said petition, the same is hereby approved and said 
Sanford Bus Line, Inc., authorized to begin operations under said agreement 
upon filing proper schedules and tariff with the Commission, and upon 
compliance with insurance covering equipment to be used in such operation. 

By Order of the Commission. 
This 16th day of May, 1947. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3998 



LEASE AGREEMENT BETWEEN CAROLINA COACH COMPANY 
AND SANFORD BUS LINES, INC. 

Order 

In an order dated May 13, 1947, the Commission approved lease agreement 
between Carolina Coach Company and Sanford Bus Lines, Inc., for operating 
rights as follows: 

1. Between Sanford and Lillington via Jonesboro over U. S. Highway 
No. 421. 

2. Between Lillington and Smithfield via Angier over N. C. Highway 
No. 210. 

A petition (in the form of a letter) has been filed requesting cancellation 
of said operating rights. 

Upon consideration of said petition, the same is hereby approved and 
said lease agreement to operate over the franchise routes of the Carolina 
Coach Company of Raleigh as shown in the foregoing paragraph is hereby 
cancelled, as of June 18, 1948. 

By Order of the Commission. 
This 30th day of June, 1948. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 



R. G. Johnson, Commissioner 



Docket No. 3998 



364 N. C. Utilities Commission 

APPLICATION OF CAROLINA COACH COMPANY TO ABANDON 
FRANCHISE BETWEEN HOLLY SPRINGS AND VARINA OVER 

N. C HIGHWAY 55. 

Order 

In an order dated December 10, 1942, in Docket No. 2543, this applicant 
was given a franchise to operate between Holly Springs and Varina over 
Highway No. 55 among other rights. 

Under date of June 17, 1947, this applicant requested abandonment of its 
operating rights between Holly Springs and Varina over N. C. Highway 
No. 55. The applicant further states in this application that since the Durham- 
Dunn Bus Company was given franchise rights to operate between Holly 
Springs and Raleigh via Macedonia over the Ramkatte Road, and since this 
route is shorter than the existing franchise route of the applicant, there is 
not sufficient volume of passenger traffic to justify the operation of the 
Carolina Coach Company between Holly Springs and Raleigh via Varina; 
therefore 

It Is Ordered, that the applicant, Carolina Coach Company, be, and it 
is hereby, granted permission to abandon passenger bus service between 
Holly Springs and Varina over N. C. Highway No. 55. 



R. G. Johnson, Commissioner 



By Order of the Commission. 
This 9th day of July, 1947. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4068 



APPLICATION OF CAROLINA COACH COMPANY TO ABANDON 
FRANCHISE FROM WASHINGTON TO BETHEL OVER N. C. 
HIGHWAY 2>Z TO ITS JUNCTION WITH N. C HIGHWAY 11 AND 
THENCE VIA N. C. HIGHWAY 11 TO BETHEL, AND RETURN OVER 

THE SAME ROUTE. 

Order 

In an order dated October 16, 1946, Docket No. 3574, this applicant was 
given a franchise to operate "from Washington over N. C. Highway 33 
to intersection of N. C. Highway 33 and N. C. Highway 11; thence over 
N. C. Highway 11 to Bethel," among other rights. 

Under date of June 26, 1947, this applicant requested abandonment of its 
operating rights from Washington to Bethel over N. C. Highway ?)2> to its 
junction with N. C. Highway 11 and thence via N. C. Highway 11 to 
Bethel, and return over the same route. The applicant further states in 
this application that there is not a sufficient volume of passenger traffic 
moving over said route to justify the continuance of the existing operation 
of the Carolina Coach Company over said route and between said points, 
and public convenience and necessity does not justify and require the continuance 



Decisions and Adjustments of Complaints 365 

of the operation by Carolina Coach Company of the franchise from Washington 
to Bethel ; therefore 

It Is Ordered, that the applicant, Carolina Coach Company, be, and it 
is hereby, granted permission to abandon passenger bus service from Washington 
to Bethel over N. C. Highway 33 to its junction with N. C. Highway 
11 and thence via N. C. Highway 11 to Bethel, and return over the same 
route. 

This the 12th day of July, 1947. 

Stanley Winborne, Chairman 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4093 

APPLICATION OF CAROLINA COACH COMPANY TO ABANDON 
FRANCHISE FROM DURHAM, N. C, VIA N. C. HIGHWAY 264 TO 
ITS JUNCTION WITH N. C. HIGHWAY 98 AND THENCE VIA 
N. C. HIGHWAY 98 TO ITS JUNCTION WITH N. C. HIGHWAY 
59, AND RETURN OVER THE SAME ROUTE. 

Order 

In an order dated December 18, 1942, Docket No. 2694, this applicant 
was given a franchise to operate from Durham, N. C, via N. C. Highway 
264 to its junction with N. C. Highway 98 and thence via N. C. Highway 
98 to its junction with N. C. Highway 59, and return over the same route, 
among other rights. 

Under date of June 26, 1947, this applicant requested abandonment of its 
operating rights from Durham via N. C. Highway 264 to its junction 
with N. C Highway 98 and thence via N. C. Highway 98 to its junction 
with N. C. Highway 59, and return over the same route. The applicant 
further states in this application that there is not a sufficient volume of 
passenger traffic moving over said route to justify the continuance of the 
existing operation of the Carolina Coach Company over said route and 
between said points, and public conveniences and necessity does not justify 
and require the continuance of the operation by Carolina Coach Company 
of the franchise from Durham over said routes to the intersection of N. C. 
Highway 98 and N. C. Highway 59; therefore 

It Is Ordered, that the applicant, Carolina Coach Company, be, and it 
is hereby, granted permission to abandon passenger bus service from Durham, 
N. C, via N. C. Highway 264 to its junction with N. C. Highway 98 
and thence via N. C. Highway 98 to its junction with N. C. Highway 59, 
and return over the same route. 

This the 14th day of July, 1947. 

Stanley Winborne, Chairman ' 

ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4094 



366 N. C. Utilities Commission 

APPLICATION OF CAROLINA COACH COMPANY TO ABANDON 
FRANCHISE FROM SPRING HOPE TO TAYLORS CROSS ROADS 
VIA N. C. HIGHWAY 581 TO JUNCTION OF UNNUMBERED COUNTY 
ROAD AND THENCE OVER THIS COUNTY ROAD TO TAYLORS 
CROSS ROADS, AND RETURN OVER SAME ROUTE. 

Order 

In an order issued under Docket No. 3837, this applicant was given a 
franchise to operate from Spring Hope to Taylors Cross Roads via N. C. 
Highway 581 to junction of unnumbered county road and thence over this 
county road to Taylors Cross Roads, and return over same route, among 
other rights. 

Under date of June 26, 1947, this appUcant requested abandonment of 
its operating rights from Sprnig Hope to Taylors Cross Roads via N. C. 
Highway 581 to junction of unnumbered county road and thence over this 
county road to Taylors Cross Roads, and return over the same route. The 
applicant further states in this application that there is not a sufficient 
volume of passenger traffic moving over said route to justify the continuance 
of the existing operation of the Carolina Coach Company over said route 
and between said points, and public convenience and necessity does not 
justify and require the continuance of the operation by Carolina Coach 
Company of the franchise from Spring Hope to Taylors Cross Roads via 
N. C. Highway 581 to junction of unnumbered county road and thence over 
this county road to Taylors Cross Roads, and return over the same route; 
therefore 

It Is Ordered, that the applicant, Carolina Coach Company, be, and it is 
hereby, granted permission to abandon passenger bus service from Spring 
Hope to Taylors Cross Roads via N. C. Highway 581 to junction of 
unnumbered county road and thence over this county road to Taylors 
Cross Roads, and return over same route. 

This the 14th day of July, 1947. 

Stanley Winborne, Chairman 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4095 "; 



APPLICATION OF CAROLINA COACH COMPANY TO ABANDON 
FRANCHISE FROM NASHVILLE TO NORLINA VIA N. C. HIGHWAY 
58 TO ITS JUNCTION WITH U. S. HIGHWAY 158 ONE MILE EAST 
OF WARRENTON AND FROM WARRENTON TO NORLINA VIA 
U. S. HIGHWAY 158, AND RETURN OVER THE SAME ROUTE. 

Order 

In an order dated December 18, 1942, Docket No. 2639, this applicant 
was given a francliise to operate from Nashville to Norlina via N. C. 
Highway 58 to its junction with U. S. Highway 158 one mile east of 



Decisions and Adjustments lt Complaints 367 

Warrenton and from Warrenton to Norlina via U. S. Highway 158, and return 
over the same route, among other rights. 

Under date of June 26, 1947, this applicant requested abandonment of 
its operating rights from Nashville to Norlina via N. C. Highway 58 to 
its junction with U. S. Highway 158 one mile east of Warrenton and from 
Warrenton to Norhna via U. S. Highway 158, and return over the same 
route. The applicant further states in this application that there is not a 
sufficient volume of passenger traffic moving over said route to justify the 
continuance of the existing operation of the Carolina Coach Company 
over said route and between said points, and pubhc convenience and necessity 
does not justify and require the continuance of the operation by Carolina 
Coach Company of the franchise from Nashville to Norlina via N. C. 
Highway 58 to its junction with U. S. Highway 158 one mile east of 
Warrenton and from Warrenton to Norlina via U. S. Highway 158, and 
return over the same route; therefore 

It Is Ordered, that the appHcant, CaroHna Coach Company, be, and it 
is hereby, granted permission to abandon passenger bus service from Nashville 
to Norlina via N. C. Highway 58 to its junction with U. S. Highway 
158 one mile east of Warrenton and from Warrenton to Norlina via U. S. 
Highway 158, and return over the same route. 

This the 14th day of July, 1947. 

Stanley Winborne, Chairman 
ATTEST: 
Chas. Z. Flack, Chief Clerk -*» 

Docket No. 4096 



APPLICATION OF CAROLINA COACH COMPANY FOR FRANCHISE 
CERTIFICATE TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS BETWEEN RALEIGH AND JUNCTION OF U. S. 
HIGHWAY 70 AND U. S. 1 VIA U. S. HIGHWAY 70, COMMONLY 
KNOWN AS WESTERN BOULEVARD, TO THE UNION BUS 
STATION IN RALEIGH. 

• 
Order 
Appearances : 

For Applicant: Arch T. Allen, Attorney for Carolina Coach Company, 

Raleigh, North Carolina 
No Protestants 

Winborne, Chairman 

This Matter was heard by the Commission on September 19, 1947, in 
the Hearing Room in Raleigh, after due notice of hearing had been published 
and affidavit of publication filed with the Commission, 

This matter first came to the attention of the Commission by a petition 
filed by numerous citizens residing on U. S. Llighway 70 and U. S. 1, 
asking that shuttle service be provided by some bus company from Raleigh 



368 N. C. Utilities Commission 

over U. S. 1 to the intersection of U. S. 1 and U. S. 70, and then back 
to Raleigh around by junction of U. S. 1 and U. S. 70. 

The CaroHna Coach Company already holds a franchise from Raleigh 
over U. S. 1, and having been advised of the petition above referred to 
made application for a franchise from the junction of U. S. 1 and U. S. 
70 over U. S. 70 to Raleigh. 

The Carolina Coach Company offered testimony to the effect that Western 
Boulevard was now densely populated and that in its opinion there was 
need for such loop service. 

The Commission finds as a fact that public convenience and necessity 
has been shown for the service. 

Wherefore It Is Ordered, that upon compliance with the rules and regulations 
of the Commission, that the franchise certificate of the Carolina Coach Company 
be amended to include an operation from the junction of U. S. 1 and U. S. 
70 over U. S. 70 to the Union Bus Station in Raleigh, with the right 
to operate buses in either direction around the loop, upon such schedules 
as shall be approved by the Commission. 
This the 20th day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 4159 

PETITION FOR APPROVAL OF AGREEMENT BETWEEN 
CAROLINA COACH COMPANY AND ATLANTIC GREYHOUND 
CORPORATION OF DATE AUGUST 1, 1947, RELATIVE TO INTRA- 
STATE OPERATIONS BETWEEN LEXINGTON AND CHARLOTTE. 

Order 
It appears from a petition dated September 25, 1947, and filed with the 
Commission on September 25, 1947, that Carolina Coach Company and Atlantic 
Greyhound Corporation have entered into an agreement, a copy of which 
is attached to the petition, whereby said Atlantic Greyhound Corporation is 
authorized, subject to the approval of the Commission to operate over the 
franchised routes of Carolina Coach Company as follows : Between Lexington 
and Charlotte, via Salisbury and other intermediate points. 

Upon consideration of said petition, the same is hereby approved, and said 
Atlantic Greyhound Corporation is authorized to begin operations over said 
routes upon compliance with all the requirements of the said Commish-ion. 
By Order of the Commission. 
This the 10th day of October, 1947. 

Stanley Winborne, Chairman 
Fred C, Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk 
Docket No. 4188 



Decisions and Adjustments of Complaints 369 

PETITION FOR APPROVAL OF AGREEMENT AND LEASE 
BETWEEN CAROLINA COACH COMPANY AND C A. FESPERMAN, 
D/B/A F AND H BUS COMPANY, ROCKWELL, N. C, RELATING 
TO OPERATIONS IN THE VICINITY OF KANNAPOLIS, N. C. 

Order , 

A lease agreement between Carolina Coach Company as lessor and C. A. 
Fesperman, d/b/a F and H Bus Company, as lessee, dated February 12, 
1948, has been filed with the Commission for approval, said agreement providing, 
among other tilings, for the sale of nine buses together with the right to 
engage in the transportation of passengers over the franchised routes of the 
said lessor as particularly described in Paragraph (1) of the Order herein. 

The lessee, along with his Attorney, George Uzzell, appeared before 
the Commission at which time the Commission was advised that C. A, 
Fesperman proposes to operate under the trade name of F and H Bus 
Company, Lessee of Carolina Coach Company. Lessee represents to the 
Commission that he has sufficient cash on hand to pay for seven of the 
buses purchased and in addition thereto has cash on hand in the amount 
of Two Thousand ($2,000.00) Dollars. 

Upon consideration of said lease agreement and the petition thereto attached, 
the Commission is of the opinion that the same should be approved. 

It Is, Therefore, Ordered: 

(1) That the proposed sale of equipment and lease of operating rights 
described in said lease agreement be approved, and the said C. A. Fesperman, 
d/b/a F and H Bus Company, is hereby authorized to operate as Lessee 
of the Carolina Coach Company in the transportation of passengers over 
the following routes and between the following points : 

(a) China Grove to Rockwell — via N. C. 152 via Bostian Cross Roads 
and Miller's Store ; Bostian Cross Roads to Concord — via old Salisbury- 
Concord Road via Mt. Gilead Church; Miller's Store on N. C. 152 to U. S. 
Highway 52 in Salisbury ; via unnumbered road via Faith to the intersection 
of said road with U. S. Highway 52 in Salisbury; and Gold Hill to Salisbury 
via unnumbered county road known as "Ridge Road" via Liberty Church and 
Pooletown. 

(b) Between Salisbury and Bostian Cross Roads via a county road known 
as Old Salisbury-Concord Road to its intersection with N. C. 152 at Bostian 
Cross Roads. 

(c) All contracts or operating agreements of any kind or nature used 
by Lessor in connection with the operation by Lessor as a contract carrier 
for the purpose of transporting workers of the mills at Kannapolis and 
China Grove to and from their places of work in the area and territory 
near Kannapolis. 

(2) That the schedules and tariff of the Carolina Coach Company now 
on file with the Commission be adopted and used as the schedules and tariff 
of C. A, Fesperman, d/b/a F and H Bus Company, Lessee of Carolina 
Coach Company until changed with the consent and approval of the Commission. 

(3) That operations uiider said lease agreement shall not commence until 



370 N. C. Utilities Commission 

the said lessee shall have filed with the Commission insurance covering 
the equipment to be used in said operation. 

By Order of the Commission. 

This the 14th day of February, 1948. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 4310 

PETITION FOR APPROVAL OF AGREEMENT AND LEASE 

BETWEEN CAROLINA COACH COMPANY AND C. A. FESPERMAN. 

D/B/A F AND H BUS COMPANY, LESSEE OF CAROLINA COACH 

COMPANY, ROCKWELL, N. C, RELATING TO OPERATIONS IN 

THE VICINITY OF KANNAPOLIS, N. C. 

Supplemental Order 

Whereas, order was entered on February 14, 1948, under the docket 
number 4310, and 

Whereas, the petition requested authorization for the transportation of 
workers employed in Kannapolis and China Grove to and from their places 
of employment and points along the routes described in said order, said 
agreement providing that C. A. Fesperman, d/b/a F and H Bus Company, 
Lessee of Carolina Coach Company, could operate three schedules daily 
between Kannapolis and China Grove transporting workers employed in 
Kannapolis over the franchised route of Carolina Coach Company between 
Kannapolis and China Grove and operating with closed doors along said 
route, as provided in said agreement. 

It Is, Therefore, Ordered that approval be given to the lease agreement 
authorizing the operation of three round trips scheduled daily between China 
Grove and Kannapolis, with closed doors over the franchised route of Carolina 
Coach Company, to meet the mill shifts in Kannapolis. That Supplemental 
Order be nunc pro tunc. 

This the 20th day of February, 1948. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk ■ . 

Docket No. 4310 

APPROVAL OF AGREEMENT AND LEASE BETWEEN CAROLINA 
COACH COMPANY AND M. & B. TRANSIT LINES, INC., BURLING- 
TON, N. C, RELATING TO OPERATIONS IN THE VICINITY OF 

BURLINGTON, N. C 

Order 

A lease agreement between Carolina Coach Company as lessor, and M. & B. 
Transit Lines, Inc., as lessee, dated March 23, 1948, has been filed with 



Decisions and Adjustments of Complaints 371 

the Commission for approval, said agreement providing, among other things, 
for the right to engage in the transportation of passengers over the franchise 
routes of the said lessor as particularly described in Paragraph (1) of the 
Order herein. 

Upon consideration of said lease agreement and the petition thereto attached, 
the Commission is of the opinion that the same should be approved. 

It Is, Therefore, Ordered: 

(1) That the proposed lease of operating rights described in said lease 
agreement be approved and the transportation of passengers over the following 
routes and between the following points: 

(a) Between the junction of N. C. Highway 54 and U. S. Highway 
70 near the western city limits of Burlington via N. C. Highway 
62 (known as the Alamance Road) to Alamance. 

(2) That operations under said lease agreement shall not commence until 
the said lessee shall have complied with the requirements of the North 
Carolina Utilities Commission. 

By Order of the Commission. 

This the 25th day of March, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4355 



APPLICATION OF CAROLINA COACH COMPANY FOR AUTHORITY 
TO TRANSPORT PASSENGERS, EXPRESS, MAIL, NEWSPAPERS, 
AND/OR BAGGAGE OVER THE FOLLOWING ROUTE: FROM 
THOMASVILLE, N. C, TO LEXINGTON, N. C, OVER N. C. HIGHWAY 
109A TO ITS INTERSECTION WITH AN UNNUMBERED COUNTY 
ROAD APPROXIMATELY 4.2 MILES SOUTH OF THOMASVILLE; 
THENCE IN A WESTERLY DIRECTION OVER SAID UNNUMBERED 
COUNTY ROAD THROUGH THE HOLLY GROVE COMMUNITY TO 
ITS INTERSECTION WITH U. S. HIGHWAY 64 APPROXIMATELY 
1.19 MILES SOUTH OF LEXINGTON, N. C; THENCE OVER U. S. 
HIGHWAY 64 INTO LEXINGTON, N. C; AND RETURN OVER THE 
SAME ROUTE SERVING- ALL INTERMEDIATE POINTS. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

Arch T. Allen, Attorney, Raleigh, N. C. 

For Protestants : 
None. 
Johnson, Commissioner: 

This application was called for hearing on the 25th day of August, 1948, 
at the Forsyth County Courthouse in Winston- Salem, N. C. Affidavit of 



372 N. C. Utilities Commission 

publieation of notice was filed. No protest was filed to the granting of the 
application and no protestants appeared. 

The applicant seeks authority to transport passengers over N. C. 109A 
from Thomasville to the intersection of an unnumbered county road, and 
over the unnumbered county road via Holly Grove to the intersection of 
said unnumbered county highway with U. S. 64; thence over U. S. 64 
into Lexington. This area is without public transportation and is a very 
thickly populated rural community. Many people living along this road work 
in either Lexington or Thomasville. Several witnesses were offered to prove 
convenience and necessity. Convenience and necessity having been found; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when the applicant has complied with all rules and regulations 
of this Commission its present franchise certificate be amended as follows: 

To transport passengers, express, mail, newspapers, and/or baggage over 
the following route: 

From Thomasville, N. C, to Lexington, N. C, over N. C. Highway 
109A to its intersection with an unnumbered county road approximately 
4.2 miles south of Thomasville ; thence in a westerly direction over said 
unnumbered county road through the Holly Grove community to its intersection 
with U. S. Highway 64 into Lexington, N. C. ; and return over the same 
route, serving all intermediate points. 

This 30th day of August, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4464 

APPLICATION OF CAROLINA COACH COMPANY TO OPERATE 
AS MOTOR VEHICLE CARRIER OF PASSENGERS FROM FARM- 
VILLE, N. C, OVER N. C. HIGHWAY 121 NORTH A DISTANCE OF 
1.6 MILES TO ITS INTERSECTION WITH AN UNNUMBERED, 
HARDSURFACED COUNTY ROAD; THENCE IN AN EASTERLY 
DIRECTION OVER THE SAID HARDSURFACED ROAD THROUGH 
THE ARTHUR COMMUNITY, A DISTANCE OF APPROXIMATELY 
8.5 MILES TO THE JUNCTION OF THE HARDSURFACED ROAD 
WITH U. S. 264, AND RETURN OVER THE SAME ROUTE. 

Order 
Before Commissioner Johnson. 

Appearances: For the Applicant: 

Arch T. Allen, Attorney at Law, Raleigh, N. C. 

For Protestants: None. 
Johnson, Commissioner: 

This application was heard on the 10th day of November, 1948, in the 
Hearing Room of the North Carolina Utilities Commission in Raleigh. No 



Decisions and Adjustments of Complaints 373 

protest was filed to the granting of the application and no protestants 
appeared. 

The applicant seeks to give service through the Arthur community, which 
is located West of Greenville and East of Farmville. This area is without 
public transportation at the present time, and is a . highly developed farming 
section. Convenience and necessity having been found; 

It Is, Therefore, Ordered, That this application be, and the same is 
hereby, granted; that when applicant has complied with all rules and regulations 
of the Commission its present franchise certificate be amended as follows: 

To operate as motor vehicle carrier of passengers, their baggage, mail and 
light express, from Farmville, N. C, over N. C. Highway 121 north, a 
distance of 1.6 miles, to its intersection with an unnumbered, hardsurfaced 
county road; thence in an easterly direction over the said hardsurfaced 
road through the Arthur community, a distance of approximately 8.5 miles, 
to the jnuction ©f the hardsurfaced road with U. S. 264, and return over 
the same route. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 10th day of November, 1948. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4465 



APPLICATION OF CAROLINA COACH COMPANY FOR AUTHORITY 
TO TRANSPORT PASSENGERS, NEWSPAPERS, MAIL, EXPRESS, 
AND/OR BAGGAGE IN THE SAME VEHICLE WITH PASSENGERS 
OVER THE FOLLOWING REGULAR ROUTE: FROM THOMASVILLE, 
N. C, TO LEXINGTON, N. C, OVER U. S. HIGHWAYS 29-70 AS 
RELOCATED; AND RETURN OVER THE SAME ROUTE, SERVING 
ALL INTERMEDIATE POINTS. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

Arch T. Allen, Attorney, Raleigh, N. C. 

For Protestants: 
None. 

Johnson, Commissioner: 

This application was called for hearing on the 25th day of August, 1948, 
at the Forsyth County Courthouse in Winston- Salem, N. C. Affidavit of 
publication of notice of hearing was filed. No protest appeared to the granting 
of the application. 

The applicant has a franchise to operate from Thomasville to Lexington 
over U. S. Highways 29 and 70. The Highway Commission has just relocated 



374 N. C. Utilities Commission 

a portion of this road. The purpose of this application is to seek authority 
to operate over old U. S. 29 and 70 and new U. S. 29 and 70. tTh6 
new road parallels the old road. Convenience and necessity having been 

shown ; 

It Is, Therefore, Ordered, That this applicant be, and the same is 
hereby granted; that when the applicant has complied with all rules and 
regulations of this Commission its present franchise certificate be amended 
as follows: 

To transport passengers, newspapers, mail, express, and/or baggage over 
the following highways and between the following points: 

From Thomasville to Lexington over U. S. 29 and 70, as relocated, and 
return over the same route, serving all intermediate points. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 30th day of August, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4470 



PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
CAROLINA COACH COMPANY, AS LESSOR, AND E. L. WELCH 
AND J. R. NEWTON, T/A CITY CAB COMPANY, AS LESSEE. 

Order 

A lease agreement between Carolina Coach Company, as lessor, and E. L. 
Welch and J. R. Newton, t/a City Cab Company, High Point, N. C, as 
lessee, dated the 24th day of August, 1948, has been filed with the Commission 
for approval for the right to lease certain space on bus station premises 
at High Point, N. C. with the privilege of operating taxis upon the said 
bus station premises upon the terms and conditions and for the rental 
stipulated in said agreement. Upon consideration of said lease agreement 
and the petition attached thereto, the Commission is of the opinion that the 
same should be approved. 

It Is, Therefore, Ordered: 

That the lease agreement entered into be approved. 

By Order of the Commission. 

This the 14th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 4508 



Decisions and Adjustments of Complaints 375 

APPLICATION OF CAROLINA COACH COMPANY OF VIRGINIA TO 
OPERATE PASSENGER SERVICE BETWEEN LOUISBURG AND 
WELDON VIA N. C. HIGHWAY 561 FROM LOUISBURG TO CENTER- 
VILLE, TO WOOD, TO BRINKLEYVILLE, TO JUNCTION OF N. C. 
HIGHWAY 561 AND U. S. HIGHWAY 301, THENCE VIA U. S. 
HIGHWAY 301 TO HALIFAX AND WELDON. 

Order 
Appearances: 

Arch T. Allen, attorney for the Applicant, Raleigh, N. C. 
No Protestants. 

Winborne, Chairman 

This Matter came before the Commission for hearing and was heard 
before Commissioners Hunter and Winborne on December 12, 1946, in the 
Hearing Room of the Commission in the city of Raleigh. Affidavit of 
publication of notice was filed with the Commission on November 26, 1946. 

On September 7, 1946, the Carolina Coach Company applied to the Commission 
for a franchise certificate to operate motor vehicles for transportation of 
passengers from Louisburg via N. C. Highway 561 to Centerville, thence 
to Wood, thence to Hollister, thence to Brinkleyville to the junction of 561 
and U. S. 301 ; thence via U. S. 301 to Halifax and Weldon. At the hearing 
it was made to appear that a part of the road between Hollister and Halifax, 
mainly between Hollister and Brinkleyville, was not an all weather road, 
but that the Highway Commission was preparing to hard-surface that part 
of the highway, making the road from Hollister to Halifax an all weather 
road the whole distance. At the conclusion of the hearing the Commission 
was asked to defer entering an order in this case until it could be determined 
when the road would be completed, and on May 22, 1947, application was 
filed by the Carolina Coach Company asking that it be granted the franchise 
originally applied for, but until the road has been completed the applicant be 
given the privilege of detouring via N. C. Highway 48 between Hollister and 
Littleton via Airlie. 

The applicant offered several witnesses at the hearing, from the various 
points to be served, who testified that there was a pressing need for public 
transportation at Wood, Hollister, Brinkleyville and intermediate points; 
that it was a fine farming section and rather densely populated and that in 
their opinion such a service, if provided, would be liberally patronized. Since 
the hearing the Commission has been advised that the Interstate Commerce 
Commission has granted an interstate franchise over the same road as applied 
for intrastate, and that it also has granted the privilege of detouring between 
Hollister and Littleton via Airlie, as the applicant has herein asked for. 

Upon consideration of all matters presented to the Commission In this 
case, the Commission finds as a fact that public convenience and necessity 
has been shown for the operation applied for, and 

It Is, Now, Therefore, Ordered, 

1. That upon compliance with the rules and regulations of this Commission 
that the applicant be granted a franchise certificate to operate as a motor 
vehicle carrier of passengers from Louisburg via N. C. Highway 561 to 



376 N. C. Utilities Commission 

Centerville, to Wood, thence to Hollister, thence to Brinkleyville, to the 
junction of N. C. Highway 561 and U. S. Highway 301, thence via U. S. 
301 to Halifax and Weldon, and return. 

2. It is further ordered that until the road from Brinkleyville to Halifax 
is completed and made an all weather road, the applicant is granted the 
privilege of detouring between Hollister and Littleton by way of Airlie on 
N. C. Highway 48. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This the 30th day of May, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3746 



BEFORE THE N. C UTILITIES COMMISSION 

IN THE MATTER OF 

LEASE BY CAROLINA COACH COMPANY OF VIRGINIA OF 

CERTAIN EQUIPMENT AND FRANCHISE RIGHTS OF LEWIS B. 

NEWMAN, D/B/A SILVER FOX LINES. 

Order 

It appears from the petition in this matter that Carolina Coach Company 
of Virginia and Lewis B. Newman, d/b/a Silver Fox Lines have entered 
into a lease agreement pending the consummation of a sales agreement, which 
was presented to and approved by the Commission under date of October 12, 
1946, in Docket No. 3779, by which said lease agreement Carolina Coach 
Company of Virginia will take over the operating rights and equipment of 
L. B. Newman, d/b/a Silver Fox Lines, described in said sales agreement, 
and operate the same as lessee of said Newman until such time as the details 
of said sales agreement may be worked out and a change of ownership made. 

Upon consideration of said lease agreement, the Commission is of the 
opinion that the same should be approved for the purposes therein expressed; 
and it is so ordered. 

By Order of the Commission. 

This the 15th day of January, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3779 



Decisions and Adjustments op Complaints Zll 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
CAROLINA COACH COMPANY OF VIRGINIA AND VIRGINIA STAGE 
LINES, INC., DATED AUGUST 25, 1948, RELATIVE TO INTRASTATE 
OPERATIONS BETWEEN ROXBORO, N. C AND VIRGILINA, 
VIRGINIA OVER N. C HIGHWAY NO. 49, AND BETWEEN ROXBORO, 
N. C. AND THE NORTH CAROLINA-VIRGINIA STATE LINE VIA 
SEMORA, N. C. AND MILTON, N. C. OVER N. C. HIGHWAY NO. 57. 

Order 

An agreement between Carolina Coach Company of Virginia, as lessor, and 
Virginia Stage Lines, Inc., as lessee, dated August 25, 1948, has been filed 
with the Commission for approval for the right to engage in the transportation 
of passengers, their baggage, express, mail and newspapers over the franchised 
routes of the said lessor as particularly described in Paragraph (1) of the 
order herein. Upon consideration of said lease agreement and the petition 
attached thereto, the Commission is of the opinion that the same should be 
approved. 

It Is, Therefore, Ordered: 

(1) That the operating rights described in said lease agreement be approved 
and the said Virginia Stage Lines, Inc. is hereby authorized to operate 
as lessee of the Carolina Coach Company of Virginia in the transportation 
of passengers, their baggage, express, mail and newspapers over the following 
routes and between the following points: 

(a) Between Roxboro, N. C. and Virgilina, Virginia over N. C. 
Highway No. 49, and between Roxboro, N. C. and the North 
Carolina-Virginia State Line via Semora, N. C. and Milton, 
N. C. over N. C. Highway No. 57. 

(2) That said Virginia Stage Lines, Inc. is authorized to begin operations 
over said routes upon compliance with all the requirements of said Commission. 

By Order of the Commission. 
This the 4th day of October, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chie] Clerk 

Docket No. 3779 



378 N. C. Utilities Commission 

APPLICATION OF CAROLINA COACH COMPANY OF VIRGINIA 
FOR FRANCHISE CERTIFICATE TO OPERATE AS MOTOR 
VEHICLE CARRIER OF PASSENGERS BETWEEN JUNCTION OF 
N. C 87 WITH NEWLY PAVED, UNNUMBERED ROAD IN ROCK- 
INGHAM COUNTY AND JUNCTION OF N. C. 87 WITH ANOTHER 
NEWLY PAVED, UNNUMBERED ROAD IN CASWELL COUNTY 
OVER SAID UNNUMBERED, NEWLY PAVED COUNTY ROAD VIA 
BRINCEFIELD STORE COMMUNITY. 

Order 

Appearances : 

For Applicant: 

Arch T. Allen, Attorney at Law, Raleigh, N. C. 
No Protestants 
WiNBORNE, Chairman 

This case came on for hearing and was heard before the Commission on 
September 19, 1947 in the City of Raleigh. Affidavit of Publication of Notice 
of hearing was duly filed. 

The Carolina Coach Company now holds a franchise over highway 87 
from Reidsville to Ossipee and beyond. On said highway 87, lying partly 
in Rockingham County and partly in Caswell County, there has just been 
completed a newly paved highway running from highway 87 a short distance 
to the Brincefield Store Community, and then back to Highway 87 in Caswell 
County. The new, unnumbered highway was constructed to serve the Brince- 
field Store Community and forms a triangle, as shown on the map filed with 
the application to which reference is hereby made for a more accurate 
description. 

The Carolina Coach Company offered the testimony of several public 
witnesses tending to show that the Brincefield Store Community had no 
transportation facilities and was badly in need of same ; that on the new 
road both from highway 87 to Brincefield Store Community back to highway 
87 there were a number of houses, and that between the point where the 
new road left highway 87 and where it returned to highway 87 there were 
no residences or buildings of any kind. 

Upon a consideration of the entire matter, the Commission finds as a fact 
that public convenience and necessity has been shown for the service. 

Wherefore It Is Ordered, that upon compliance with the rules and regulations 
of the Com.mission the Carolina Coach Company's present certificate be amended 
so as to give it the right to transport passengers and their baggage, light 
express, mail and newspapers in the same vehicle with passengers over the 
new, unnumbered highway from highway 87 by the Brincefield Store Community, 
and back to highway 87. 

This the 22nd day of September, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST : 

Chas. Z, Flack, Chief Clerk 
Docket No. 4160 



Decisions and Adjustments of Complaints 379 

PETITION FOR APPROVAL OF LEASE AGREEMENT BETWEEN 
CAROLINA COACH COMPANY OF VIRGINIA AND M. & B. TRANSIT 

LINES, INC 

Order ' 

A lease agreement between Carolina Coach Company of Virginia, as lessor, 
and M. & B. Transit Lines, Inc., Burlington, N. C, as lessee, dated the 
31st day of August, 1948, has been filed with the Commission for approval 
of the right to engage in the transportation of passengers over the franchised 
routes of the said lessor as particularly described in Paragraph (1) of the 
order herein. Upon consideration of the said lease agreement and the petition 
attached thereto, the Commission is of the opinion that the same should be 
approved. 

It Is, Therefore, Ordered: 

(1) That the operating rights described in said lease agreement be approved 
and the said M. «& B. Transit Lines, Inc. is hereby authorized to operate 
as lessee of the Carolina Coach Company of Virginia in the transportation 
of passengers over the following routes and between the following points : 

(a) Between Burlington and Altamahaw via Ossipee over N. C. Highway 
87. 

By Order of the Commission. 

This the 20th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 4513 



PETITION OF CAROLINA POWER AND LIGHT COMPANY 

IN THE MATTER OF THE OPERATION OF THE RALEIGH MOTOR 

BUS SYSTEM OVER FIXED ROUTES. 

Order 

The petition of Carolina Power & Light Company with respect to the 
fixing of routes for the operation of motor buses in the City of Raleigh 
was heard by the North Carolina Utilities Commission on this the 26th 
day of January, 1948, and it appearing to the Commission that the proposed 
routes as set forth in said petition have been agreed to by 'the City 
Council of the City of Raleigh by appropriate resolutions duly adopted by 
the Council and that said routes are for the purpose of improving the 
service to the citizens of Raleigh and are in the public interest; it further 
appearing to the Commission that the improved service to be given to the 
Anderson Heights area and to the Budleigh area is being proposed by 
petitioner upon an experimental basis to the end that if, within a period 
fixed by the Commission, the revenues from the improved service are not 
sufficient to justify a continuation of such service, the petitioner reserves 



380 N. C. Utilities Commission 

the right to apply to the Commission for permission to restore the routes 
and schedules now in effect in said areas: 

Now, Therefore, It Is Ordered, Adjudged And Decreed that the petition 
be and is hereby allowed and petitioner is hereby authorized and empowered 
to establish the routes for the operation of motor bus service within the 
City of Raleigh as set forth in said petition. 

It Is Further Ordered that the routes serving the Anderson Heights area 
and the Budleigh area and the schedules to be inaugurated be on an experimental 
basis and after a period of sixty days from and after the inauguration 
of service under said schedules, the petitioner may apply to the Commission 
for permission to restore the routes and schedules now in effect in serving 
said area, upon showing that the revenues from said areas for the improved 
service are not sufficient to justify continuing such service. 

It Is, Further, Ordered that any fixed routes established by any previous 
order of the Commission which are inconsistent with the routes established 
under this order are hereby superseded and abrogated to the extent of any 
such inconsistencies. 

Done in the City of Raleigh, North Carolina, this 26th day of January, 
1948. 

North Carolina Utilities Commission 
Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4299 

APPLICATION OF CAROLINA SCENIC COACH LINES FOR 
AUTHORITY TO TRANSPORT PASSENGERS, NEWSPAPERS, 
EXPRESS, MAIL AND/OR BAGGAGE OF PASSENGERS IN SAME 
VEHICLE, FROM CHIMNEY ROCK, N. C. TO LAKE LURE, N. C, 
OVE'R U. S. HIGHWAY NO. 74; THENCE TO N. C.-S. C. STATE 
LINE OVER U. S. HIGHWAY NO. 74 AND N. C HIGHWAY NO. 9. 
RETURN OVER SAME ROUTE. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

C. W. Tillett, Attorney at Law, Charlotte, N. C. 

For Protestants : 

Shearon Harris, Charlotte, N. C, for 
Queen City Coach Company 
Johnson, Commissioner: 

This application was heard at the Langren Hotel in Asheville, N. C, on 
the 12th day of August, 1947, at 10:00 A. M. 

The applicant at the present time is operating under interstate authority 
over the route which it proposes to sefvQ intrastate passengers. The Commission 



Decisions and Adjustments of Complaints 381 

is of the opinion that the citizens living along the route applied for are 
entitled to intrastate service, as well as interstate service. From the evidence 
offered the Commission is of the opinion that there is a need for intrastate 
service. It, therefore, finds that convenience and necessity has been shown. 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all rules and regulations of 
the Commission the franchise certificate of Carolina Scenic Coach Lines 
be amended as follows : 

To transport passengers, newspapers, express, mail and/or baggage of passen- 
gers in the same vehicle with passengers, from Chimney Rock, N. C, to 
Lake Lure, N. C, over U. S, Highway 74; thence to North Carolina- South 
Carolina State Line over U. S. Highway 74 and N. C. Highway 9 via 
Mill Springs, and return over the same route. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



\ 



This 23rd day of October, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4121 



PETITION FOR APPROVAL OF SALE AND TRANSFER OF 
CERTIFICATE NO. 68, McDUFF TURNER. FT AL, D/B/A CAROLINA 
SCENIC COACH LINES, SPARTANBURG, S. C, AND CERTIFICATE 
NO. 490, HAMISH TURNER, D/B/A CAROLINA STAGES, SPARTAN- 
BURG, S. C, TO CAROLINA SCENIC STAGES, SPARTANBURG S. C 

Order 

A petition has been filed with the Commission for approval of the sale 
and transfer by McDuff Turner, et al, d/b/a Carolina Scenic Coach Lines, 
Spartanburg, S. C, and Hamish Turner, d/b/a Carolina Stages, Spartanburg, 
S. C, to Carolina Scenic Stages, Spartanburg, S. C, of all operating rights 
described in said Certificates Nos. 68 and 490. The purchase price being transfer 
of all property owned by McDuff Turner, et al, d/b/a Carolina Scenic 
Coach Lines, and Hamish Turner, d/b/a Carolina Scenic Stages, to Carolina 
Scenic Stages, and stock in the corporation. That the corporation has been 
amended as of December 31, 1947, and the capital stock increased to Two 
Hundred Thousand ($200,000.00) Dollars, said articles of incorporation being 
recorded in Book 5, Page 124 in the R. M. C. office of Spartanburg County, 
S. C 

Upon consideration of the petition, the Commission finds no reason why the 
proposed sale and transfer should not be approved, insofar as the Commission 
is authorized to do under the provisions of General Statutes 62-107; that is 
to say, insofar as the said sale and transfer of the operating rights under 
said Certificates Nos. 68 and 490 are concerned; that such approval should 
not be construed as a finding or as any representation by the Commission 
as to the value of the property included in said sale, for rate making purposes, 



382 N. C. Utilities Commission 

or for any other purpose, but merely to give validity as required by statute to 
the sale and transfer of said Certificates. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by McDuff Turner et al d/b/a 
Carolina Secnic Coach Lines, of Franchise Certificate No. 68 and all rights, 
title and interest therein, be approved, said operating rights particularly- 
described as follow^s : 

Transportation of passengers, baggage, mail, light express and news- 
papers from Asheville to the S. C. State Line over N. C. 191 from 
Asheville via Avery, Mills River to Hendersonville ; thence over U. S. 
176 via East Flat Rock, Saluda and Tryon to the S. C. State Line. 
From Marion over U. S. 221 to Rutherfordton, thence over U. S. 
221-A via Spindale, Forest City and Cliffside to the S. C. State 
Line; from Rutherfordton to Tryon over N. C. 108; from Shelby 
over N. C. 18 to the S. C. State Line; from junction of N. C. 18 
and N. C. 150 at a point three miles south of Shelby over said N. C. 
150 via Boiling Springs to the S. C. State Line and return over 
same route. 

To transport passengers, newspapers, express, mail and/or baggage 
of passengers in the same vehicle with passengers, from Chimney 
Rock, N. C, to Lake Lure, N. C, over U. S. Highway 74; thence 
to North Carolina- South Carolina State Line over U. S. 74 and N. C. 
Highway 9 via Mill Springs and return over the same route. Docket 
No. 4121. 

As amended December 18, 1939, between Shelby and the S. C. 
State Line, via Patterson Springs and Earl, N. C. 

Lease agreement authorizing Rutherford County Transit Company 
to operate over route of Carolina Scenic Coach Lines between Ruther- 
fordton and Cliffside. Docket No. 2558. 

(2) That the proposed sale and transfer by Hamish Turner, d/b/a 
Carolina Stages, to Carolina Scenic Stages, of Franchise Certificate No. 490, 
and afl rights, title and interest therein, be approved, said operating rights 
being particularly described as follows : 

Transportation of passengers, mail and light express over routes 
From Charlotte over the Wilmont road, designated on the Mecklenburg 
County Highway Map as Highway 196, to the intersection of said 
highway with Highway 198; thence over Highway 198 via Charlotte 
Municipal Airport to Dixie; thence over County Highways 18 and 
25 via Steel Creek Church and Shoptom to the S. C. State Line; 
from the intersection of County Highways 196, 198 and 200, over 
Highway 200 via Brow Hill to the intersection of said highway with 
County Highway 18 near Steel Creek Church; from Brow Hill over 
an unnumbered county highway to the gate of the Charlotte Municipal 
Airport. 

(3) That Franchise Certificate No. 68, now in the name of McDuff 
Turner et al, d/b/a Carolina Scenic Coach Lines, P. O. Box 767, Spartanburg, 
S. C, be cancelled and a franchise certificate in lieu thereof be issued to 



Decisions and Adjustments of Complaints 383 

Carolina Scenic Stages, granting to it the operating rights particularly 
described in Paragraph (1) above. 

(4) That Franchise Certificate No. 490, now in the name of Hamish 
Turner, d/b/a Carolina Stages, P. O. Box 767, Spartanburg, S. C, be 
cancelled, and a franhcise certificate in lieu thereof be issued to Carolina 
Scenic Stages, granting to it the operating rights particularly described in 
Paragraph (2) above. 

(5) That this Order shall not become efifective until compliance has been 
made with all the requirements of the Commission. 

By Order of the Commission. 

This the 28th day of January, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4279 



SALE BY CAROLINA TRANSPORTATION COMPANY OF ITS 

OPERATING PROPERTIES, REAL ESTATE AND INTRASTATE 

FRANCHISE RIGHTS TO THURSTON MOTOR LINES, 

INCORPORATED 

Order 

I. M. Bailey, Escrow Agent appointed under Order of this Commission 
dated September 24, 1945, has discharged all his duties thereunder and has 
filed a statement of his receipts and disbursements in connection therewith. 

It Is Ordered that the final account filed by I. M. Bailey, Escrow Agent, 
is hereby approved. 



This the 9th day of September, 1947. 



Chas. Z. Flack, Chief Clerk 
ATTEST : 

Docket No. 3232 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



384 N. C, Utilities Commission 

APPLICATION OF CENTRAL BUS COMPANY, INC., LINCOLNTON, 
NORTH CAROLINA, FOR AUTHORITY TO TRANSPORT PASSEN- 
GERS OVER CERTAIN STREETS IN THE TOWN OF LINCOLNTON 
AND CERTAIN HIGHWAYS IN LINCOLN COUNTY, TO-WIT; 
HIGHWAY NO. 27 FROM INTERSECTION OF HIGHWAY NO. 27 
AND NO. 150 AS EAST EDGE OF BOGER CITY, NORTH CAROLINA, 
(LINCOLN COUNTY) TO LINCOLNTON, APPROXIMATELY 1^ 
MILES; THENCE EAST MAIN STREET THROUGH BUSINESS 
SECTION OF TOWN OF LINCOLNTON AROUND COURT SQUARE, 
ON SOUTH ASPEN STREET, ALSO DESIGNATED AS FEDERAL 
HIGHWAY NO. 321 TO INTERSECTION OF MOTZ AVENUE, OVER 
MOTZ AVENUE TO INTERSECTION WITH SOUTH GROVE STREET, 
THENCE OVER GROVE STREET TO WESTERN CITY LIMITS; 
THENCE OVER A COUNTY ROAD (DIRT ROAD) TO SAXONY- 
GLENN MILLS; THENCE TO RHODES-RHYNE MANUFACTURING 
COMPANY VILLAGE, AND RETURN OVER SAME ROUTE. 
SCHEDULE TO BEGIN AT BOGER CITY TERMINAL AT 6:00 A. M. 
AND TO BE EACH HOUR. SOUTH ASPEN STREET TO 
INTERSECTION , W^ITH COUNTY ROAD (NOT NUMBERED) 
LEADING TO LABORATORY, NORTH CAROLINA, AND OVER SAID 
ROAD TO LABORATORY, SOUTH SIDE AND TO LONG SHOALS 
AND RETURN OVER SAME ROUTE. SCHEDULE TO BEGIN AT 
LINCOLNTON AT 12:00 NOON AND 4:00 P. M.. 7:00 P. M. AND 
9:30 P. M. ON SATURDAYS ONLY. LINCOLNTON TO GROUSE, 
APPROXIMATELY FIVE MILES; ON CERTAIN DAYS, LEAVE 
LINCOLNTON AT 5:00 P. M. AND 9:00 P. M. 

Order 

Appearances : 

For the Applicant: 

W. H. Childs, Lincolnton, North Carolina. 

For the Protestants : 

James R. Kiger, Queen City Coach Company, Charlotte, North 
Carolina 

Johnson, Commissioner: This application was heard in Charlotte, North 
Carolina, on the 18th day of March, 1948, at 10:00 o'clock A. M., in the 
Courthouse. Petition of intervention was filed by Queen City Coach Company 
on March 4, 1948. The applicant moved to eliminate the route from Lincolnton 
to Grouse from its application. Motion allowed. Queen City Coach Company, 
after the amendment, was permitted to withdraw their protest. 

Ample testimony having been offered to show convenience and necessity, 
it is, therefore, ordered that the application of Central Bus Company, Inc., 
Lincolnton, North Carolina, for authority to operate over the routes hereinafter 
set out, be and the same is hereby granted; and that when the applicant 
has complied with all of the rules and regulations of this Commission, his present 
franchise certificate be amended as follows : 

1. To operate as a carrier of passengers, mail, light express and baggage 
from the Courthouse Square in Lincolnton over Main Street to the intersection 



i 



Decisions and Adjustments of Complaints 385 

of Highway No. 27 and Highway No. 150 at Boger City and return, a 
distance of approximately one and one-half miles. 

2. Thence from the Courthouse Square in Lincolnton over South Aspen 
Street, also designated as Federal Highway No. 321, to the intersection of 
Motz Avenue; thence over Motz Avenue to its intersection with South Grove 
Street ; thence over Grove Street to Western City Limits ; thence over a 
county road to Saxony-Glenn Mills ; thence to l^hodes-Rhyne Manufacturing 
Company village and return over the same route. 

3. From the Courthouse Square in Lincolnton over South Aspen Street 
and South Aspen Street extended to Laboratory, South Side and Long Shoals 
and return over the same route. 



By Order of the Commission. 
This 26th day of April, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Docket No. 4113 

PETITION FOR APPROVAL OF SALE AND TRANSFER OF 
CERTIFICATE 551 BY JOHN LOY, D/B/A CITY BUS COMPANY, 
OF HENDERSONVILLE, TO T. RALPH YOUNG OF BUNCOMBE 

COUNTY. 

Order 

A joint petition has been filed with the Commission by John Loy, d/b/a 
City Bus Company of Hendersonville, owner of passenger franchise certificate 
No. 551, as vendor, and T. Ralph Young of Buncombe County, as vendee, 
for approval of the sale and transfer by the said vendor to the said vendee 
of all operating rights described in said certificate 551. The sales agreement 
between the parties, a copy of which is attached to the petition, also includes 
the sale and transfer of other property, including passenger franchises granted 
by the towns of Hendersonville, East Flat Rock and Laurel Park, and 
also including 5 Ford transit buses, 2 Chevrolet Superior buses, 1 Dodge 
Wayne bus, and 1 Pony Cruiser, and other miscellaneous equipment and 
facilities. The purchase price for all property involved in said sale is $35,000, 
of w4iich $17,190 is to be paid upon transfer of the property so purchased, 
and the remainder of $17,810, being an indebetedness of the vendor to the 
State Trust Company of Hendersonville, is to be assumed and paid by the 
vendee as a part of the purchase price. 

Upon consideration of petition, the Commission finds no reason why the 
proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do under the provisions of G. S. 62-107; that is to say, 
insofar as said sale and transfer of the operating rights under said certificate 
551 are concerned, but that such approval should not be construed as a 
finding or as any representation by the Commission as to the value of the 
property included in said sale for rate making purposes or for any other 



386 N. C. Utilities Commission 

purpose, but merely to give validity, as required by statute, to the sale and 
transfer of said certificate. 

It Is, Therefore, Ordered: 

1. That the proposed sale and transfer by John Loy, d/b/a City Bus 
Company, to T. Ralpli Young, of franchise certificate No. 551, and all 
rights, title and interest therein, be approved, said operating rights being 
particularly described as follows : 

(a) From Hendersonville over U. S. 64 to the intersection of an 
unnumbered county road known as the Dana Road, thence east over 
said Dana Road to Dana Church, thence over another unnumbered 
county road south and then west to a point on U. S. 176 between 
Flat Rock and Hendersonville, thence over U. S. 176 to Hendersonville, 
and return over same route. (D-2590) 

(b) From Hendersonville to Fletcher via Mountain Sanatorium 
over an unnumbered county road known as the Old Hendersonville- 
Asheville Road, thence over another unnumbered county road known 
as the Airport Road to the Asheville-Hendersonville Airport, and 
return over same route, but not including the right to pick up 
passengers in Hendersonville for Fletcher or in Fletcher for Henderson- 
ville. (D-2812) 

(c) From Hendersonville over U. S. 64 to a point one mile 
east of the city limits of Hendersonville, thence over an unnumbered 
highway to the unincorporated town of Fruitland, and return, the 
operations over U. S. 64 to be with closed doors. (D-3628) 

(d) From Hendersonville to Lake Lure via Bat Cave and Chimney 
Rock, thence over N. C. 9 and N. C. 108 to Tryon, thence over U. S. 
176 to Hendersonville, the operations herein being for sight-seeing 
service only and restricted to sight-seeing passengers picked up and 
discharged at Hendersonville. 

2. That franchise certificate No. 551, now in the name of John Loy, 
d/b/a City Bus Company, be cancelled and a franchise certificate in lieu 
thereof be issued to T. Ralph Young granting to him the operating rights 
particularly described in paragraph 1 above. 

3. That this order shall not become effective until notice to the Commission 
in writing by the vendor and the said vendee that said sale has been 
consummated and that the said vendee is ready to begin operations ; provided, 
however, that said operations shall not commence until the said vendee shall 
have first filed with the Commission a description of the equipment to be 
used in said operation, together with insurance covering the same, and the 
filing of tariffs and schedules, as required by the Commission. 

By Order of the Commission. 
This the 28th day of Alarch, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3974 



Decisions and Adjustments of Complaints 



387 



APPLICATION OF MRS. J. W. SNOW FOR AUTHORITY TO 
TRANSPORT PASSENGERS OVER THE FOLLOWING ROUTES: 
STARTING AT A POINT ON FAIRVIEW ROAD, BILTMORE, N. C, 
AT MERCHANT STREET AND TRAVELING MERCHANT STREET 
CROSSING LIBERTY STREET AND ON RALEIGH ROAD TO 
ONTEORA BLVD., TO WILMINGTON ROAD, FROM WILMINGTON 
ROAD ON OAKLEY ROAD TO HILLDALE AND BACK INTO 

FAIRVIEW ROAD. 



Order 
Before Commissioner John:on. 

Appearances: For the Applicant: 

Sam M. Cathey, Attorney, Asheville, N. C. 

For Protestants : None 

Johnson, Commissioner: 

This application was set for hearing and heard on the 12th day of August, 
1947, at the Langren Hotel, Asheville, N.C. Afifidavit of Notice of Publication 
was filed and no protests were filed to the granting of the application. Conven- 
ience and necessity having been shown; 

It Is, Therefore, Ordered, That the application of Mrs. J. W. Snow 
in this docket be, and the same is hereby, granted; that when the applicant 
has complied with all rules and regulations of the Commission the franchise 
certificate of Mrs. J. W. Snow be amended as follows: 

From the intersection of Merchant Street with Fairview Road, Biltmore, 
N. C. ; thence along Merchant Street to Raleigh Road ; thence over Raleigh 
Road to Onteora Boulevard; thence up Onteora Boulevard to Wilmington 
Street; thence over Wilmington Street to Oakley Road; thence over Oakley 
Road to Hilldale; thence over Hilldale to the intersection of Hilldale Street 
with Fairview Road and return. 



This 31st day of October, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3974 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



388 N. C. Utilities Commission 

APPLICATION OF T. R. YOUNG T/A CITY BUS COMPANY FOR 

AUTHORITY TO OPERATE AS MOTOR VEHICLE CARRIER OF 

PASSENGERS OVER THE FOLLOWING ROUTES: 

1. BEGINNING AT THE TERMINAL OF THE APPLICANT 
LOCATED ON MAIN STREET IN HENDERSONVILLE; THENCE 
SOUTH OVER MAIN STREET TO THE INTERSECTION OF THE 
OLD AND NEW SPARTANBURG HIGHWAYS; THENCE OVER THE 
NEW SPARTANBURG HIGHWAY, U. S. NO. 176, TO FIVE POINTS, 
A POINT ONE MILE SOUTH OF EAST FLAT ROCK; THENCE IN 
AN EASTERLY DIRECTION OVER OAK GROVE ROAD, ONE MILE 
TO THE INTERSECTION OF OAK GROVE ROAD WITH TABOR 
STREET; THENCE OVER TABOR STREET IN A WESTERLY 
DIRECTION APPROXIMATELY ONE MILE TO THREE POINTS, 
THE INTERSECTION OF TABOR STREET WITH U. S. HIGHWAY 
176; THENCE OVER OLD SPARTANBURG HIGHWAY, THROUGH 
THE TOWN OF EAST FLAT ROCK, APPROXIMATELY Y^ MILE 
TO WHERE THE OLD SPARTANBURG HIGHWAY INTERSECTS 
U. S. 176 IN THE NORTHERN PART OF THE TOWN OF EAST 
FLAT ROCK; THENCE OVER U. S. 176 APPROXIMATELY ^ MILE 
TO WHERE THE OLD SPARTANBURG HIGHWAY INTERSECTS 
U. S. 176; THENCE OVER OLD SPARTANBURG HIGHWAY IN A 
NORTHEASTERLY DIRECTION TO THE FAIR GROUNDS; THENCE 

OVER OLD SPARTANBURG HIGHWAY IN A WESTERLY 
DIRECTION TO THE INTERSECTION OF U. S. 176, AND 

RETURN. 

2. BEGINNING AT THE TERMINAL ON MAIN STREET; THENCE 
OVER SOUTH MAIN STREET AND U. S. HIGHWAY 25 TO FLAT 
ROCK; THENCE OVER AN UNNUMBERED HIGHWAY TO EAST 

FLAT ROCK AND RETURN. 

3. LEAVE TERMINAL GOING OUT SIXTH AVENUE WEST AND 
BREVARD HIGHWAY 64 TO DAVIS STATION; TURN LEFT, 
CROSSING TRANSYLVANIA RAILROAD TRACKS TO WHITE PINE 
GAP ROAD AND FOLLOW IT TO ITS JUNCTION WITH CRYSTAL 
DRIVE; THENCE WITH CRYSTAL DRIVE TO LAUREL PARK 
HIGHWAY; THENCE WITH LAUREL PARK HIGHWAY EAST 
TO ITS JUNCTION WITH LAKE DRIVE; THENCE WITH LAKE 
DRIVE TO ITS JUNCTION WITH WHITE PINE GAP DRIVE; 
THENCE WITH WHITE PINE GAP DRIVE TO ITS JUNCTION 
WITH LAUREL PARK HIGHWAY; THENCE WITH LAUREL PARK 

HIGHWAY AND FIFTH AVENUE TO MAIN STREET AND 

TERMINAL. 

4. LEAVE TERMINAL GOING OUT SOUTH MAIN STREET TO 
CASWELL STREET; TURN RIGHT ON CASWELL TO KANUGA 
STREET; FOLLOW KANUGA STREET TO KANUGA ROAD ABOUT 
2 MILES TO A POINT KNOWN AS LOG TABERNACLE CHURCH; 
TURN RIGHT ON OLD KANUGA ROAD 



Decisions and Adjustments of Complaints 389 

ROAD; FOLLOW WILLOW ROAD TO HEBRON STREET, HEBRON 

STREET TO WHITTED STREET, WHITTED STREET 

TO FIRST AVENUE, FIRST AVENUE TO MAIN STREET; 

THENCE NORTH TO TERMINAL. 

5. LEAVE TERMINAL GOING OUT NORTH MAIN STREET TO 
ASHEVILLE HIGHWAY, U. S. 25, TO BALFOUR COTTON MILLS 

AND RETURN SAME WAY TO TERMINAL. 

6. LEAVE TERMINAL GOING OUT NORTH MAIN STREET TO 
SEVENTH AVENUE; SEVENTH AVENUE EAST TO U. S. HIGHWAY 
64; THENCE EAST ON HIGHWAY 64 TO A POINT 1^ MILES EAST 
OF THE CITY LIMITS OF HENDERSONVILLE KNOWN AS DELUXE 

SERVICE STATION, AND RETURN THE SAME WAY. 

7. FROM DANA OVER AN UNNUMBERED HIGHWAY TO BLUE 
RIDGE, A DISTANCE OF APPROXIMATELY 1^ MILES; THENCE 
FROM BLUE RIDGE OVER AN UNNUMBERED HIGHWAY KNOWN 
AS THE SUGAR LOAF ROAD, TO THE INTERSECTION OF SAID 
SUGAR LOAF ROAD WITH HIGHWAY 64 AT DELUXE SERVICE 

STATION, A DISTANCE OF APPROXIMATELY 5 MILES. 

8. FROM THE INTERSECTION OF CRYSTAL SPRINGS DRIVE 
WITH LAUREL PARK HIGHWAY IN A WESTERLY DIRECTION 
OVER AN UNNUMBERED HIGHWAY TO JUMP OFF ROCK, A 

DISTANCE OF APPROXIMATELY 3 MILES. 

Before Comaiissioner Johnson. 

Appearances: For the Applicant: 

^ H. C. Jarvis, Attorney, Box 7145, Asheville, N. C. 

O. B. Crowell, Attorney, Hendersonville, N. C. 

For the Protestants: 

C. W. Tillett, Attorney, Law Building, Charlotte, 
N. C, for Carolina Scenic Coach Lines. 
Shearon Harris, Charlotte, N. C, General Counsel, 
for Queen City Coach Company. 

Johnson, Commissioner: 

This cause was heard on the 7th day of October, 1947, in Hickory, N. C. 
Affidavit of Publication of Notice of hearing was filed on October 3, 1947. 

The applicant. City Bus Company, and its predecessor, have for several 
years been serving the City of Hendersonville and communities adjacent 
thereto by authority granted by the City of Hendersonville and this Commission. 
That part of this application which is not now being served by the applicant 
is not protested. The protest of the Carolina Scenic Coach Lines applies 
to territory now being served by this applicant. 

A recent decision of the Supreme Court held that city officials had no 
authority to grant a franchise to carriers operating over the streets of the 
cities and towns of this State. The purpose of this application is to receive 
froni this Commission authority to operate over the streets of the City of 



390 N. C. Utilities Commission 

Hendersonville and to extend certain routes authorized by this Commission. 
The appHcant filed resolutions passed by the City of Hendersonville, the Town 
of East Flat Rock and the Town of Laurel Park approving this application. 
Convenience and necessity having been shown; 

It Is, Therefore, Ordered, That the application in this docket be, and the 
same is hereby, granted ; that when the applicant has complied with all 
rules and regulations of this Commission the franchise certificate of T. R. 
Young t/a City Bus Company be amended to include the following routes: 

1, Beginning at the terminal of the applicant located on Main Street in 
Hendersonville ; thence South over Main Street to the intersection of the 
Old and New Spartanburg Highways; thence over the New Spartanburg 
Highway, U. S. No. 176, to Five Points, a point one mile South of East 
Flat Rock ; thence in an easterly direction over Oak Grove Road, one mile to 
the intersection of Oak Grove Road with Tabor Street ; thence over Tabor 
Street in a westerly direction approximately one mile to Three Points, the 
intersection of Tabor Street with U. S. Highway 176; thence over Old 
Spartanburg Highway, through the Town of East Flat Rock, approximately 
Yz mile to where the Old Spartanburg Highway intersects U. S. 176 in 
the Northern part of the Town of East Flat Rock; thence over U. S. 
176 approximately ^ mile to where the Old Spartanburg Highway intersects 
U. S. 176; thence over Old Spartanburg Highway in a Northeasterly direction 
to the Fair Grounds ; thence over Old Spartanburg Highway in a Westerly 
direction to the intersection of U. S. 176, and return. 

2. Beginning at the terminal on Main Street; thence over South Main 
Street and U. S. Highway 25 to Flat Rock; thence over an unnumbered 
highway to East Flat Rock and return. 

3. Leave terminal going out Sixth Avenue West and Brevard Highway 
64 to Davis Station; turn left, crossing Transylvania Railroad tracks to 
White Pine Gap Road and follow it to its junction with Crystal Drive; thence 
with Crystal Drive to Laurel Park Highway; thence with Laurel Park 
Highway east to its junction with Lake Drive; thence with Lake Drive to 
its junction with White Pine Gap Drive; thence with White Pine Gap 
Drive to its junction with Laurel Park Highway; thence with Laurel Park • 
Highway and Fifth Avenue to Main Street and terminal. 

4. Leave terminal going out South Main Street to Caswell Street; turn 
right on Caswell to Kanuga Street; follow Kanuga Street to Kanuga Road 
about two miles to a point known as Log Tabernacle Church; turn right 
on old Kanuga Road Yz mile to Willow Road; follow Willow Road to 
Hebron Street, Hebron Street to Whitted Street, Whitted Street to First 
Avenue, First Avenue to Main Street ; thence North to terminal. 

5. Leave terminal going out North Main Street to Asheville Highway, 
U. S. 25, to Balfour Cotton Mills and return same way to terminal. 

6. Leave terminal going out North Main Street to Seventh Avenue; 
Seventh Avenue east to U. S. Highway 64; thence east on Highway 64 
to a point 1^ miles east of the city limits of Hendersonville known as Deluxe 
Service Station, and return the same way. 

7. From Dana over an unnumbered highway to Blue Ridge, a distance 
of approximately 1 ^ miles ; thence from Blue Ridge over an unnumbered 
highway known as the Sugar Loaf Road, to the intersection of said Sugar 



Decisions and Adjustments of Complaints 391 

Loaf Road with Highway 64 at Deluxe Service Station, a distance of 
approximately 5 miles. 

8. From the intersection of Crystal Springs Drive with Laurel Park Highway 
in a westerly direction over an unnumbered highway to Jump Off Rock, a 
distance of approximately 3 miles. 

Streets covered in the City of Hendersonville : Grove Street, King Street, 
Locust Street, Elizabeth Street, Patton Avenue, North Main Street, Asheville 
Road, Fleming Street, Ninth Avenue, Oakland Avenue, Eighth Avenue, Seventh 
Avenue, Church Street, Sixth Avenue, Fifth Avenue, Fourth Avenue, Blythe 
Street, Whitted Street, First Avenue, Justice Street, Spring Street, Hebron 
Street, State Street, Willow Street, Kanuga Street, Washington Street, Caswell 
Street, Allen Street, Armstrong Street, Main Street. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 26th day of November, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4112 



PETITION FOR APPROVAL OF SALE AND TRANSFER OF 
OPERATING RIGHTS BY T. R. YOUNG, D/B/A CITY BUS COMPANY, 
HENDERSONVILLE, NORTH CAROLINA, TO JACK BRYSON, D/B/A 
CITY BUS COMPANY, HENDERSONVILLE, NORTH CAROLINA. 

Order 

A joint petition has been filed with the Commission by T. R. Young, d/b/a 
City Bus Company, as vendor, and Jack Bryson, d/b/a City Bus Company, 
as vendee, for approval of sale and transfer by the said vendor to the said 
vendee of certain operating rights for the transportation of passengers over 
and upon the streets of the City of Hendersonville and its environs and 
fully described and set forth in Docket No. 4112. 

Upon consideration of the petition, the Commission finds no reason why the 
proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do under the provisions of G. S. 62-107; that is to say, 
insofar as the said sale and transfer of the operating rights under said 
application filed in Docket No. 4458 are concerned ; but that such approval 
should not be construed as a finding, or as any representation by the 
Commission as to the value of the property included in said sale for rate- 
making purposes, or for any other purpose, but merely to give validity as 
required by statute to the sale and transfer of said operating rights. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by T. R. Young, d/b/a City 
Bus Company to Jack Bryson, d/b/a City Bus Company, of the operating 
rights referred to in the application herein, and all rights, title and interest 



392 N. C. Utilities Commission 

therein, be approved, said operating rights being particularly described as 
follows : 

(a) Beginning at the terminal of the applicant located on Main 
Street in Hendersonviile ; thence South over Main Street to the 
intersection of the Old and New Spartanburg Highways; thence 
over the New Spartanburg Highway, U. S. No. 176, to Five Points, 
a point one mile South of East Flat Rock; thence in an easterly 
direction over Oak Grove Road, one mile to the intersection of Oak 
Grove Road with Tabor Street; thence over Tabor Street in a 
westerly direction approximately one mile to Three Points, the inter- 
section of Tabor Street with U. S. Highway 176; thence over Old 
Spartanburg Highway, through the Town of East Flat Rock, approxi- 
mately Yz mile to where the Old Spartanburg Highway intersects 
U. S. 176 in the Northern part of the Town of East Flat Rock; 
thence over U. S. 176 approximately ^ mile to where the Old Spartan-' 
burg Highway intersects U. S. 176; thence over Old Spartanburg 
Highway in a Northeasterly direction to the Fair Grounds; thence 
over Old Spartanburg Highway in a westerly direction to the inter- 
section of U. S. 176, and return. 

(b) Beginning at the terminal on Main Street; thence over South 
Main Street and U. S. Highway 25 to Flat Rock; thence over 
an unnumbered highway to East Flat Rock and return. 

(c) Leave terminal going out Sixth Avenue West and Brevard 
Highway 64 to Davis Station ; turn left, crossing Transylvania Rail- 
road tracks to White Pine Gap Road and follow it to its junction 
with Crystal Drive; thence with Crystal Drive to Laurel Park High- 
way; thence with Laurel Park Highway east to its junction with Lake 
Drive; thence with Lake Drive to its junction with White Pine Gap 
Drive; thence with White Pine Gap Drive to its junction with Laurel 
Park Highway ; thence with Laurel Park Highway and Fifth Avenue 
to Main Street and terminal. 

(d) Leave terminal going out South Main Street to Caswell 
Street ; turn right on Caswell to Kanuga Street ; follow Kanuga 
Street to Kanuga Road about 2 miles to a point known as Log 
Tabernacle Church ; turn right on old Kanuga Road ^ mile to Willow 
Road; follow Willow Road to Hebron Street, Hebron Street to 
Whitted Street, Whitted Street to First Avenue, First Avenue to 
Main Street ; thence North to terminal. 

(e) Leave terminal going out North Main Street to Asheville 
Highway, U. S. 25, to Balfour Cotton Mills and return same way 
to terminal. 

(f) Leave terminal going out North Main Street to Seventh 
Avenue; Seventh Avenue east to U. S. Highway 64; thence east 
on Highway 64 to a point 1^ miles east of the city Hmits of 
Hendersonviile known as Deluxe Service Station, and return the 
same way. 

(g) From Dana over an unnumbered highway to Blue Ridge, a 
distance of approximately D4 miles; thence from Blue Ridge over 
an unnumbered highway known as the Sugar Loaf Road, to the 



Decisions and Adjustments of Complaints 393 

intersection of said Sugar Loaf Road with Highway 64 at Deluxe 

Service Station, a distance of approximately 5 miles. 

(h) From the intersection of Crystal Springs Drive with Laurel 

Park Highway in a westerly direction over an unnumbered highway 

to Jump Off Rock, a distance of approximately 3 miles. 
Streets covered in the City of Hendersonville: Grove Street, King Street, 
Locust Street, Elizabeth Street, Patton Avenue, North Main Street, Asheville 
Road, Fleming Street, Ninth Avenue, Oakland Avenue, Eighth Avenue; 
Seventh Avenue, Church Street, Sixth Avenue, Fifth Avenue, Fourth Avenue, 
Blythe Street, Whitted Street, First Avenue, Justice Street, Spring Street, 
Hebron Street, State Street, Willow Street, Kanuga Street, Washington 
Street, Caswell Street, Allen Street, Armstrong Street, Main Street. 

(2) That this order shall constitute a certificate to so operate until a 
formal certificate shall have been prepared and issued by the Commission. 

(3) That this order shall not become effective until notice to the Commission 
in writing by the vendor and the said vendee that said sale shall have been 
consummated and that the said vendee is ready to begin operations ; provided, 
further, that the Commission be furnished with a certified copy of the approval 
of the City of Hendersonville to said sale and transfer of operating rights 
by T. R. Young, d/b/a City Bus Company to Jack Bryson, d/b/a City 
Bus Company ; provided, however, that said operation shall not commence 
until the said vendee shall have first filed with the Commission a description 
of the equipment to be used in said operation, together with insurance covering 
the same, and the filing of tariffs and schedules as required by the Commission. 

By Order of the Commission. 
This the 20th day of July, 1948. 



R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4458 



CANCELLATION OF FRANCHISE CERTIFICATE NO. 615 IN THE 
NAME OF MRS. NORMA KAPP, T/A CITY BUS LINES OF 

LEXINGTON. 

Order 

It appears from a petition filed with the Commission by the above named 
carrier that the operating rights granted said carrier to operate between 
Lexington and Masseytown over the Beisecker Road is not a profitable 
operation, and that sai^ carrier is sustaining a substantial loss for want of 
sufficient business to sustain the operation, and that said carrier has given 
notice through the press that said petition has been filed with this Commission 
for authority to discontinue service over said route on and after the 24th 
day of February, 1947. 

Upon the facts stated in said petition, the Commission is of the opinion 



394 N. C. Utilities Commission 

that said certificate should be cancelled and said operation discontinued in 
accordance with the prayer of the petitioner ; and it is so ordered. 

By Order of the Commission. 

This the 20th day of February, 1947. 

North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3660 



APPLICATION OF CITY BUS SERVICE FOR AUTHORITY TO 
TRANSPORT PASSENGERS, THEIR BAGGAGE AND LIGHT 
EXPRESS FROM WASHINGTON, N. C, TO DOUGLASS CROSS 
ROADS OVER THE HIGHWAY, KNOWN AS "RIVER ROAD"; 
THENCE TO WASHINGTON OVER HIGHWAY NO. 264; THENCE 
FROM WASHINGTON TO CHOCOWINITY OVER HIGHWAY NO. 
264; AND RETURN TO WASHINGTON OVER SAME ROUTE. 

Order 
Before The Full Commission. 

Appearances: For the Applicant: 

J. S. Benner, Attorney, Washington, N. C. 

For the Protestants: 

D. L. Ward, Attorney, New Bern, N. C, 
for Seashore Transportation Company. 
Arch T. Allen, Attorney, Raleigh, N. C, 
for Carolina Coach Company. 

Johnson, Commissioner: 

The Applicant seeks authority to transport passengers from Washington to 
Douglass Cross Roads by highway known as "River Road" ; thence to 
Washington via Highway 264 and from Washington to Chocowinity via 
Highway 264 and return. 

The evidence oflfered by the Applicant clearly showed that there is no 
public transportation over that part of the application known as the "River 
Road". All other parts of the application have public transportation. However, 
there was no opposition to this application from Douglass Cross Roads to 
Washington over Highway 264, and ample evidence was offered to justify 
the finding of convenience and necessity over the "River Road" and between 
Douglass Cross Roads and Washington. However, the Commission does not 
find that convenience and necessity was shown between Washington and 
Chocowinity via Highway 264. 

It Is, Therefore, Ordered, That the application of City Bus Service to 
operate between Washington and Douglass Cross Roads via highway known 
"River Road", and from Douglass Cross Roads to Washington via Highway 



Decisions and Adjustments of Complaints 395 

264, be, and the same is hereby, granted. All other parts of the application 
are hereby denied. That when the applicant has complied with all rules and 
regulations of this Commission franchise certificate be issued to City Bus 
Service as follows: 

To transport passengers, their baggage, and light express, from Washington, 
N. C, to Douglass Cross Roads via highway known as "River Road"; from 
Douglass Cross Roads to Washington, N. C, via Highway 264. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 30th day of July, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3958 



APPLICATION OF CITY BUS SERVICE, WASHINGTON, N. C, FOR 
AUTHORITY TO TRANSPORT PASSENGERS WITH BAGGAGE AND 
LIGHT EXPRESS FROM DOUGLASS CROSS ROADS OVER THE 
HIGHWAY KNOWN AS 32 N. C. STATE HIGHWAY, TO PINETOWN 
ROAD; THENCE TO PINETOWN TWO MILES FROM HIGHWAY 
NO. 32; THENCE TO DOUGLASS CROSS ROADS OVER SAME 
ROADS; THEN TO WASHINGTON OVER THE HIGHWAY OVER 
WHICH THE APPLICANT HAS RIGHTS UNDER FRANCHISE 

NO. 634. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

M. C. Paul, Washington, N. C. 

For Protestants: 

R. N. Simms, Jr., Attorney, Raleigh, N. C, for 
Norfolk Southern Bus Corporation. 

Johnson, Commissioner: 

This application was called for hearing on the 11th day of August, 1948, 
at the Pasquotank County Courthouse in Elizabeth City, N. C. Affidavit 
of publication of notice was filed. Protest was filed in apt time by the 
Norfolk Southern Bus Corporation. 

The applicant, at the present time, is operating from Douglass Cross Roads 
on U. S. Highway 264 into Washington. The Norfolk-Southern Bus Corpor- 
ation operates from Washington with closed doors over U. S. 264 to Douglass 
Cross Roads; thence with open doors from Douglass Cross Roads over 
N. C. 32 to Plymouth. Pinetown is located about 1.6 miles West of N. C. 
Highway 32. Pinetown is a community of approximately five hundred people 
without public transportation. The applicant seeks authority to transport 
passengers from Pinetown over an unnumbered highway to N. C. 32; thence 



396 N. C. Utilities Commission 

over N. C. 32 to Douglass Cross Roads. Numerous witnesses were offered 
to prove convenience and necessity. 
Convenience and necessity having been found; 

It Is, Therefore, Ordered, That this appHcation be, and the same is 
hereby, granted; that when appHcant has compHed with all rules and regulations 

of this Commission the franchise certificate of the applicant be amended 
as follows: 

To transport passengers, baggage and light express over N. C. Highway 

32 from Douglass Cross Roads Northwardly to the point where the Pinetown 

highway intersects N. C. Highway 32 ; thence westwardly over the Pinetown 
highway to Pinetown, and return over the same route. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 30th day of August, 1948. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4325 



APPLICATION OF CITY COACH COMPANY, INC., GASTONIA. N. C, 
FOR TRANSPORTATION OF PASSENGERS FROM PRISCILLA 
MILLS, VIA AN UNNAMED COUNTY ROAD OR HIGHWAY TO 
STATE HIGHWAY NO. 275, THENCE VIA 275 TO STANLEY, N. C, 
AND RETURN TO PRISCILLA MILLS VIA THE SAME ROUTE. 

Order Permitting Withdrawal 

Whereas, The above application was filed with the Commission on February 
11, 1948, and communication has been received from Basil L. Whitener, Attorney 
for Applicant, dated March 27, 1948, requesting the withdrawal of the 
application. 

It Is, Therefore, Ordered That said docket be closed, 

By Order of the Commission. 
This the 15th day of April, 1948. 



R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4309 



Decisions and Adjustments of Complaints 397 

APPLICATION OF CITY COACH COMPANY, INC., GASTONIA, FOR 
AUTHORITY TO TRANSPORT PASSENGERS FROM INTERSECTION 
OF HICKORY GROVE ROAD AND McADENVILLE-MOUNT HOLLY 
HIGHWAY AT OR NEAR NORTH BELMONT, VIA AN UNNAMED 
AND UNNUMBERED ROAD TO THE INTERSECTION OF SAID 
HICKORY GROVE ROAD AND SPENCER MOUNTAIN-STANLEY 
ROAD; THENCE VIA SAID SPENCER MOUNTAIN-STANLEY ROAD 
TO NORTH CAROLINA HIGHWAY NO. 275; THENCE ALONG SAID 
N. C. HIGHWAY NO. 275 TO THE TOWN OF STANLEY, N. C, 
AND RETURN OVER THE SAME ROUTE. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

Basil L. Whitener, Attorney, Gastonia, N. C. 

For Protestants: None 

Johnson, Commissioner: 

This application was called for hearing in the Mecklenburg County Court- 
house in Charlotte, N. C, on the 1st day of September, 1948. No protest was 
filed to the granting of the application and affidavit of publication of notice 
was duly filed. 

The applicant seeks authority to operate over an unnumbered hard-surfaced 
road known as the Hickory Grove Road from its intersection with the 
McAdenville-Mount Holly Road in North Belmont, to the intersection of 
said Hickory Grove Road with N. C. Highway 275, about 1 mile South 
of Stanley; thence over N. C. 275 into Stanley. 

The area to be served is composed of thickly populated rural communities 
without public transportation. A great number of the residents living along 
this route work in the mills of Stanley and Belmont. 

Convenience and necessity having been shown; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all rules and regulations of 
this Commission its present franchise certificate be amended as follows : 

To transport passengers from the intersection of the Hickory Grove Road 
and the McAdenville-Mount Holly Highway at or near North Belmont; over 
the Hickory Grove Road to its intersection with N. C. Highway 275, about 
one (1) mile South of Stanley; thence over N. C. 275 into Stanley, and 
return over the same route. 



This 8th day of September, 1948. 



ATTEST : 

Chas. Z. Flack^ Chief Clerk 

Docket No. 4364 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G, Johnson, Commissioner 



398 N. C. Utilities Commission 

APPLICATION OF K. HERAIAN FULK, D/B/A CITY TRANSIT 
COMPANY FOR AUTHORITY TO OPERATE AS MOTOR VEHICLE 
CARRIER OF PASSENGERS OVER EXTENSIONS OF PRESENT 
FRANCHISE ROUTES AS FOLLOWS: FROM OAKDALE COTTON 
MILL PLANT (A) SOUTH ALONG THE OAKDALE COTTON MILL 
ROAD 2.3 MILES TO INTERSECTION OF THE OAKDALE COTTON 
MILL ROAD AND KIVETT DRIVE AT BROWN'S STORE; THENCE 
WEST ALONG KIVETT DRIVE EXTENSION TO A POINT, THE 
INTERSECTION OF KIVETT DRIVE AND GORDON STREET, AT 
THE CATHOLIC CHURCH, DISTANCE OF 3.5 MILES; ALSO TURN 
RIGHT OFF KEARNS STREET AT VALLEY RIDGE ROAD; THENCE 
SOUTH ALONG VALLEY RIDGE ROAD TO THE INTERSECTION 
OF PLAYER DRIVE; THENCE ALONG THE COURSES OF PLAYER 
DRIVE NORTH TO THE INTERSECTION OF KEARNS STREET. 

Order 

This application was heard on the 29th day of October, 1948, at the Forsyth 
County Courthouse in V/inston- Salem, North Carolina. 

The applicant proposes to extend his present operations beginning at Oakdale 
Cotton Mill and connecting with his present operation at the Catholic Church 
in the Cit)' of High Point. He also proposes to serve a new development by 
operating a loop run off Kearns Street over Valley Ridge Road and Player 
Drive. 

Applicant offered numerous witnesses who testified as to the need of services 
aiong the proposed routes. There are several mills located in this area. 
Convenience and necessity having been found; 

It l3, Therefore, Ordered, That this application be, and the same Is hereby, 
granted; that when applicant has complied with all rules and regulations of 
the Commission his present franchise certificate be amended as follows: 

To transport passengers, their baggage, light express and mail over the 
following routes: (l)From Oakdale Cotton Mill Plant South along the 
Oakdale Cotton Mill Road 2.3 miles to intersection of the Oakdale Cotton 
Mill Road and Kivett Drive at Brown's Store; thence west along Kivett 
Drive extension to a point, the intersection of Kivett Drive and Gordon Street 
at the Catholic Church, in the City of High Point, a distance of 3.5 miles. 
(2) Turn right off Kearns Street, City of High Point, at Valley Ridge 
Road; thence South along Valley Ridge Road to the intersection of Player 
Drive; thence along the courses of Player Drive North to the intersection 
of Kearns Street. 



This 1st day of November, 1948. 



ATTEST: 

CiiAS. Z. Flack, Chief Clerk 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Docket No. 4198 



Decisions and Adjustments of Complaints 399 

APPLICATION OF K. HERMAN FULK, D/B/A CITY TRANSIT 
COMPANY, HIGH POINT, FOR AUTHORITY TO OPERATE AS 
AlOTOR VEHICLE CARRIER OF PASSENGERS OVER EXTENSIONS 
OF PRESENT FRANCHISE ROUTES AS FOLLOWS: LEAVE U. S. 
HIGHWAY NO. 311 AT THE POINT OF INTERSECTION AT N. C 
HIGHWAY NO. 610; THENCE EAST ALONG N. C HIGHWAY NO. 
610 TO THE POINT OF INTERSECTION WITH MEDLIN TOWN 
ROAD; THENCE NORTH ALONG THE MEDLIN TOWN ROAD, 1.7 
MILES TO THE POINT OF INTERSECTION OF THE SPRINGFIELD 
CHURCH ROAD; THENCE WEST ALONG SPRINGFIELD CHURCH 
ROAD, 1 MILE TO THE POINT OF INTERSECTION OF SPRING- 
FIELD CHURCH ROAD AND U. S. HIGHWAY NO. 311 AT 
SHEPPARD'S GARAGE. 

Order 
BEroRE Commissioner Johnson, 

Appearances : For the Applicant : 

E. A. Wright, Attorney, High Point, N. C. 
For Protestants: None 

Johnson, Commissioner: 

This application was heard at the Forsyth County Courthouse in Winston- 
Salem, North CaroHna, on the 29th day of October, 1948. Notice of Publication 
was filed and no protest was filed to the granting of the application. 

The applicant offered numerous witnesses who testified that the area 
sought to be served is a new development with approximately one hundred 
sixty families now without public transportation; that there is a need for 
the service offered by the applicant. Convenience and necessity having been 
found ; 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all rules and regulations of 
the Commission his present franchise certificate be amended as follows: 

To transport passengers, their baggage, light express and mail, leaving 
U. S. Highway No. 311 at the point of intersection at N. C. Highway No. 
610 (Ragan Home Place) ; thence East along N. C. Highway No. 610 to 
the point of intersection with Medlin Town Road; thence North along the 
Medlin Town Road 1.7 miles to the point of intersection of the Springfield 
Church Road; thence west along Springfield Church Road, 1 mile to the 
point of intersection of Springfield Church Road and U. S. Highway No. 
311 at Sheppard's Garage. 

This 1st day of November, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4524 



400 N. C. Utilities Commission 

APPLICATION OF H. W. AND T. J. MERRITT, D/B/A COASTAL 
PLAIN COACH LINES, TO OPERATE MOTOR VEHICLES FOR 
THE TRANSPORTATION OF PASSENGERS, THEIR BAGGAGE, MAIL 
AND LIGHT EXPRESS FROM ELIZABETHTOWN VIA N. C. 53 
AND 41 AND U. S. 701 TO WHITE LAKE AND JUNCTION OF 
N. C. 41 AND 12 TO TRENTON; AND FROM BEULAVILLE VIA 
N. C 111 TO JUNCTION OF 11 AND 111 TO GOLDSBORO JUNCTION 
U. S. 70 AND N. C 102, AND FROM GOLDSBORO VIA N. C. Ill 
TO STATE HOSPITAL, AND NEW METAL HIGHWAY TO N. C. 
HIGHWAY 222; AND FROM GOLDSBORO VIA NEW METAL 
HIGHWAY TO EUREKA AND N. C HIGHWAY 222 TO STANTONS- 
BURG, AND FROM STANTONSBURG VIA HIGHWAY 222 TO KENLY; 
AND FROM GOLDSBORO VIA U. S. HIGHWAY 117 TRUCK ROUTE 
TO WHITEVILLE AND FREMONT, AND FROM KENLY VIA U. S. 
HIGHWAY 301 AND N. C 581 TO MAPLEVILLE; AND N. C. 
HIGHWAY 56 TO LOUISBURG; AND FROM LOUISBURG TO SELMA 
VIA N. C. HIGHWAY 39 AND 264 VIA ZEBULON — AND RETURN 
OVER SAME ROUTES. 

Order 
Appearances : 

For Applicant: 

0, B. Moss, Attorney at Law, Spring Hope, N. C. 
For Protestants : 

1. M. Bailey, Attorney for Atlantic Greyhound Corporation, 
Raleigh 

D. L. Ward, Attorney for Seashore Transportation Co. New 

Bern 
Sherron Harris, Attorney for Queen City Coach Co., Charlotte 
S. W. Ruark, Attorney for Colonial Bus Lines, Raleigh 

Winborne, Chairman 

This Matter came on for hearing and was heard by the Commission, on 
June 27, 1947, on an application originally filed August 30, 1946. 

Affidavit of publication of notice of hearing was first filed on August 26, 
1946. Later the application was changed and readvertised as amended. 

At the hearing some agreements were entered into as to closed door operation 
between some points, but those agreements became immaterial in view of 
the Commission's findings and the order hereinafter made. 

The Commission finds from the testimony adduced at the hearing that 
some public convenience and necessity was shown by the applicant for service 
from Chinquapin to Jackson and from Jackson to Hallsville, and from Jackson 
to Beulaville ; and from Hallsville to Beulaville. It also finds that some public 
convenience and necessity was shown for an operation from Trenton over 
highway No. 12 to an unnumbered highway ; thence over unnumbered highway 
by Comfort, Hargett, Potter Hill to Beulaville; thence from Beulaville over 
an unnumbered highway direct to Pink Hill; thence from Pink Hill a short 
distance to the junction of N. C. highways 111 and 11 ; and also from 
Beulaville by another road via Cabin and Sarecta to the junction of N. C. 
highways 111 ai^d 11; thence north along N. C. highway 111 via Holts and 



Decisions and Adjustments of Complaints 401 

Outlaws to junction of N. C. highways 111 and 55, with the right to 
serve as off-route points Seven Springs and Whitehall; thence from junction 
N. C. highways 111 and 55 via Neuse to junction of N. C. highway 111 
and U. S. 70; thence from said junction a few miles to Goldsboro, and 
return over same routes. 

The evidence offered by the applicant was insufficient to show public conven- 
ience and necessity to any point applied for north and beyond Goldsboro. 
Neither was there any evidence upon which the Commission could base a 
finding of public convenience and necessity for that part of the application 
from Elizabethtown to Harrell's Store via White Lake, South River, Toma- 
hawk and Clear Runn. 

That part of the application for which the Commission has found some 
public convenience and necessity for bus operation is through a very thinly 
populated section over many dirt, unnumbered highways and through towns 
which are not shown on the highway map, and it is therefore difficult to 
define exactly the roads over which the applicant desires to operate. Several 
attempts were made to clarify the routes by the applicant and his attorney, 
and in passing upon this matter the Commission has taken the description of 
that part for which it will grant a franchise, from a map filed by the applicant 
in the record to which reference is hereby made for a clearer and more 
accurate description of the routes applied for and granted, and said map 
is attached and made a part of this order. 

Wherefore, It Is Ordered ; 

First. That upon compliance with the rules and regulations of this Commission 
a certificate of convenience and necessity for the operation of motor vehicles 
for the transportation of passengers, their baggage, mail and light express be 
issued to the applicant to operate over the routes as follows: 

From Chinquapin to Jackson and from Jackson to Hallsville, and from 
Jackson to Beulaville ; and from Hallsville to Beulaville ; from Trenton over 
highway No, 12 to an unnumbered highway ; thence over unnumbered highway 
by Comfort, Hargett, Potter Hill to Beulaville; thence from Beulaville over 
an unnumbered highway direct to Pink Hill ; thence from Pink Hill a short 
distance to the junction of N. C. highways 111 and 11; and also from 
Beulaville by another road via Cabin and Sarecta to the junction of N. C. 
highways 111 and 11; thence north along N. C. highway 111 via Holts and 
Outlaws to junction of N. C. highways 111 and 55; with the right to serve 
as off-route points Seven Springs and Whitehall; thence from junction N. C. 
highways 111 and 55 via Neuse to junction of N. C. highway 111 and U. S. 
70; thence from said junction a few miles to Goldsboro, and return over 
same routes. 

Second. That the remainder of said application not hereinabove specifically 
granted is denied. 



This the 30th day of July, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3626 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



402 N. C. Utilities Commission 

PETITION FOR APPROVAL OF SALE AND TRANSFER BY H. W. 
MERRITT AND T. J. MERRITT, D/B/A COASTAL PLAIN COACH 
LINES, WALLACE, N. C, TO COASTAL PLAIN COACH COMPANY, 
GOLDSBORO, N. C, OPERATING RIGHTS GRANTED IN ORDER 
DATED JULY 30, 1947. 

Order 

Wherea3, the Commission entered an Order in Docket No. 3626 on the 
30th day of July, 1947, granting the application of H. W. Merritt and T. J. 
Merritt, d/b/a Coastal Plain Coach Lines, to transport passengers, their baggage, 
mail and light express over the routes as follows: From Chinquapin to 
Jackson and from Jackson to Hallsville, and from Jackson to Beulaville ; 
and from Hallsville to Beulaville; from Trenton over Highway No. 12 to 
an unnumbered highway; thence over unnumbered highway to Comfort, Hargett, 
Potter Hill to Beulaville; thence from Beulaville over an unnumbered highway 
direct to Pink Hill; thence from Pink Hill a short distance to the junction 
of N. C. Highways 111 and 11; and also from Beulaville by another road 
via Cabin and Sarecta to the junction of N. C. Highways 111 and 11; thence 
north along N. C. Highway 111 via Holts and Outlaws to junction of N. C. 
Highways 111 and 55; with the right to serve as off-route points Seven 
Springs and Whitehall; thence from junction N. C. Highways 111 and 55 
via Neuse to junction of N. C Highway 111 and U. S. 70; thence from 
said junction a few miles to Goldsboro, and return over same routes. 

And Whereas, a petition has been filed with the Commission by the 
interested parties for approval of the sale and transfer by the said parties 
to the Coastal Plain Coach Company, Goldsboro, N. C. The Coastal Plain 
Coach Company, is a corporation formed by the said H. W. and T. J. 
Merritt and Mrs. Blanche E. Merritt. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do under the provisions of GS 62-107; that is to say, insofar 
as the said sale and transfer of the operating rights under said Order are 
concerned, but that such approval should not be construed as a finding, or 
as any representation by the Commission as to the value of the property 
included in said sale for rate making purposes, or for any other purpose, 
but merely to give validity as required by statute to the sale and transfer 
of said operating rights under the Order entered July 30, 1947. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by H. W. Merritt and T. J. Merritt, 
d/b/a Coastal Plain Coach Line to Coastal Plain Coach Company, of rights 
granted under said Order in Docket No. 3626 be approved, and that certificate 
be issued to Coastal Plain Coach Company, Goldsboro, N. C, for said 
operating rights, being particularly described as follows : From Chinquapin to 
Jackson and from Jackson to Hallsville, and from Jackson to Beulaville; and 
from Hallsville to Beulaville; from Trenton over Highway No. 12 to an 
unnumbered highway; thence over unnumbered highway to Comfort, Hargett, 
Potter Hill to Beulaville; thence from Beulaville over an unnumbered highway 
direct to Pink Hill; thence from Pink Hill a, short distance to the junction 



Decisions and Adjustments of Complaints 403 

of N. C. Highways 111 and 11; and also from Beulaville by another road 
via Cabin and Sarecta to the junction of N. C. Highways 111 and 11; thence 
north along N. C. Highway 111 via Holts and Outlaws to junction of N. C. 
Highways 111 and 55; with the right to serve as off -route points Seven 
Springs and Whitehall; thence from junction N. C. Highways 111 and 55 
via Neuse to junction of N. C. Highway 111 and U. S. 70; thence from 
Said Junction a few miles to Goldsboro, and return over same routes. 

(2) That this Order shall not become effective until the Coastal Plain 
Coach Company has complied with all of the requirements of the Commission. 



Stanley Winborne, Chairman 



By Order of the Commission. 
This the 1st day of October, 1947. 

ATTEST : 

Chas. Z. Flack^ Chief Clerk 

Docket No. 3626 



FRANCHISE CERTIFICATE NO. 633 IN THE NAME OF H. W. AND 
T. J. MERRITT, d/b/a COASTAL PLAIN COACH COMPANY AND/OR 
COASTAL PLAIN COACH COMPANY, GOLDSBORO, N. C, FROM 
CHINQUAPIN TO JACKSON AND FROM JACKSON TO HALLS- 
VILLE, AND FROM JACKSON TO BEULAVILLE; AND FROM 
HALLSVILLE TO BEULAVILLE; FROM TRENTON OVER HIGHWAY 
NO. 12 TO AN UNNUMBERED HIGHWAY; THENCE OVER 
UNNUMBERED HIGHWAY BY COMFORT, HARGETT, POTTER HILL 
TO BEULAVILLE; THENCE FROM BEULAVILLE OVER AN 
UNNUMBERED HIGHWAY DIRECT TO PINK HILL; THENCE 
FROM PINK HILL A SHORT DISTANCE TO THE JUNCTION OF 
N. C. HIGHWAYS NOS. Ill AND 11; THENCE ALSO FROM 
BEULAVILLE BY ANOTHER ROAD VIA CABIN AND SERECTA TO 
THE JUNCTION OF N. C. HIGHWAYS NOS. Ill AND 11; THENCE 
NORTH ALONG N. C. HIGHWAY 111 VIA HOLTS AND OUTLAWS 
TO JUNCTION OF N. C. HIGHWAYS NOS. Ill AND 55, WITH THE 
RIGHT TO SERVE AS OFF-ROUTE POINTS SEVEN SPRINGS AND 
WHITEHALL; THENCE FROM JUNCTION OF N. C. HIGHWAYS 
NOS. Ill AND 55 VIA NEUSE TO JUNCTION OF N. C. HIGHWAY 
111 AND U. S. HIGHWAY 70; THENCE FROM SAID JUNCTION A 
FEW MILES TO GOLDSBORO, AND RETURN OVER SAME ROUTES. 

DOCKET NO. 3626. 

Order Cancelling Certificate 

The records of the Utilities Commission show that the above named carrier 
permitted its insurance policy covering its equipment to expire on January 
2, 1948, and that said carrier was notified by the Commission on December 
24, 1947, and January 9, 1948, to file with the Commission public liability 
and property damage insurance covering its equipment as required by law, 



404 N. C. Utilities Commission 

and having failed to file the same or to communicate with the Commission 
with respect thereto; 

It Is, Hereby, Ordered that said Franchise Certificate 633 be, and the 
same is hereby, cancelled, and 

It Is Further Ordered that a copy of this order be mailed to H. W. 
Merritt and T. J. Merritt, d/b/a Coastal Plain Coach Company, Goldsboro, 
N. C, and copy to Coastal Plain Coach Company, Goldsboro, N. C, by 
registered mail, return receipt requested and that a copy of this order be 
delivered to the Department of Motor Vehicles with the request that the 
franchise license tags issued to said carrier be cancelled. 

Issued by order of the Commission this the 20th day of January, 1948. 

North Carolina Utilities Commission 
Stanley Winborne, Chairman 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3626 

APPLICATION OF COLONIAL BUS LINES, ROCKY MOUNT, NORTH 
CAROLINA, TO ABANDON OPERATIONS BETWEEN OXFORD TO 
VIRGILINA OVER N. C HIGHWAY 96; AND BETWEEN WILTON 
AND CREEDMOOR OVER N. C. HIGHWAY 56 AND RETURN OVER 
THE SAME ROUTES. 

Order 

Applicant has operating rights under Franchise Certificate No. 519 covering 
points shown in caption and in addition thereto holds other rights. 

Under date of December 9, 1948, this applicant requested abandonment of 
its operating rights from Oxford to Virgilina over N. C. Highway 96 and 
from Wilton to Creedmoor over N. C. Highway 56 and return. The applicant 
further states in its application that both of said routes have been operated 
on a weekly schedule since May 17, 1948 and have carried little or no 
traffic. That Public Convenience and Necessity does not justify the continuance 
of the existing operations by Colonial Bus Lines from Oxford to Virgilina 
over N. C. Highway 96 and from Wilton to Creedmoor over N. C. Highway 
56 and return over the same routes; therefore 

It Is Ordered, that the application of Colonial Bus Lines be and it is hereby 
granted permission to abandon the transportation of passengers and their baggage 
from Oxford to Virgilina over N. C. Highway 96 and from Wilton to 
Creedmoor over N. C. Highway 56 and return over the same routes. 

This the 16th day of December, 1948. 

By Order of the Commission. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 3419 I 



I 



Decisions and Adjustments of Complaints 405 

APPLICATION OF COLONIAL BUS LINES FOR FRANCHISE 

CERTIFICATE TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 

EXPRESS AND MAIL FROM MAPLEVILLE, N. C, TO SPRING HOPE, 

N. C, VIA N. C. HIGHWAY 581, A DISTANCE OF 13.8 MILES. 

Order 

Before Commissioners Winborne And Johnson. 

Appearances: For the Applicant: .' 

S. W. Ruark, Raleigh, N. C 

For Protestants : 

None . '. , . • 

Johnson, Commissioner: 

This cause came on to be heard on the 18th day of December, 1946, in 
the Hearing Room of the Commission in Raleigh, N. C. 

The applicant seeks authority to transport passengers from Mapleville to 
Spring Hope via N. C. Highway 581. Citizens living along Highway 581 
between Mapleville and Spring Hope are without public transportation. Several 
witnesses were offered to show the convenience and necessity for such operation 
as applied for by Colonial Bus Lines. Convenience and necessity having been 
found. 

It Is, Therefore, Ordered, That the application of Colonial Bus Lines be, 
and the same is hereby, granted; that when applicant has complied with all 
the rules and regulations of this Commission with regard to filing insurance, 
tariffs, etc., the franchise certificate of Colonial Bus Lines be amended by 
adding the following: 

"From Mapleville, which is located at the intersection of N. C. Highway 
56 and N. C. Highway 581, thence over N. C. 581 to Spring Hope where 
N. C. 581 intersects U. S. Highway 64." 



This 20th day of January, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3764 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



406 N. C. Utilities Commission 

APPLICATION OF COLONIAL BUS LINES FOR FRANCHISE 
CERTIFICATE TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 
EXPRESS AND MAIL BETWEEN ROCKY MOUNT, BENVENUE, 
DRAKE, GOLD ROCK, PITTMAN'S STORE (HICKORY), SALEM, 

AND RED OAK. 

Order 

Before Commissioners Winborne And Johnson. 
Appearances: For the Applicant: 

S. W. Ruark, Raleigh, N. C. 

For Protestants : 
None. 

Johnson, Commissioner: 

This cause came on to be heard in the Commission's Hearing Room in 
Raleigh, N. C, on the 18th day of December, 1946. 

The applicant seeks authority to transport passengers, their baggage, express 
and mail between Rocky Mount, Benvenue, Drake, Gold Rock, Pittman's 
Store (Hickory), Salem and Red Oak. The applicant. Colonial Bus Lines, 
at the present time operates as a franchise carrier from Rocky Mount to 
Red Oak over N. C. Highway 43. It seeks authority at this time to transport 
passengers from the intersection of N. C. 48 with N. C. 43, approximately 
3 miles Northwest of Rocky Mount over N. C. Highway 48 to the intersection 
of N. C. 48 with an unnumbered highway leading from said intersection to 
Red Oak. Convenience and necessity having been shown. 

It Is, Therefore, Ordered, That the application of Colonial Bus Lines be, 
and the same is hereby, granted ; that when applicant has complied with all 
rules and regulations of this Commission by filing schedules, tariffs, etc., the 
franchise certificate of Colonial Bus Lines be amended by adding the following : 

"From the intersection of N. C. Highway 43 and N. C. Highway 48, about 
3 miles Northwest of Rocky Mount, over N. C. 48 to the intersection of an 
unnumbered highway leading to Red Oak; thence over said unnumbered highway 
to Red Oak via Benvenue, Drake, Gold Rock, Pittman's Store (Hickory), 
and Salem." 

This 20th day of January, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3766 



Decisions and Adjustments of Complaints 407 

APPLICATION OF COLONIAL BUS LINES FOR AUTHORITY TO 
TRANSPORT PASSENGERS, THEIR BAGGAGE, EXPRESS, NEWS- 
PAPERS AND MAIL FROM A POINT ON ITS REGULAR ROUTE 
AT THE JUNCTION OF N. C. 58 AND THE PAVED HIGHWAY 
(UNNUMBERED) KNOWN AS TAYLOR'S STORE ROAD; VIA 
TAYLOR'S STORE ROAD TO TAYLOR'S STORE, A DISTANCE OF 
7.9 MILES AND RETURN OVER THE SAME ROUTE. 

Order 
Before The Full Commission. 

Appearances: For the Applicant: 

S. W. Ruark, Attorney, Raleigh, N. C. 

For the Protestants : 
None 

Johnson, Commissioner: 

This application was called for hearing at ten thirty A. M., on the 18th 
day of December, 1946, in the Hearing Room of the Utilities Commission 
in Raleigh, North Carolina. 

Honorable S. W. Ruark, Attorney for the Applicant, moved that the applicant 
be permitted to withdraw the application in this docket. Motion was granted. 

It Is, Therefore, Ordered, That the application of Colonial Bus Lines 
in the instant docket be, and the same is hereby, dismissed. 

This 18th day of December, 1946. 

North Carolina Utilities Commission 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Docket No. 3811 

APPLICATION OF COLONIAL BUS LINES TO TRANSPORT 
PASSENGERS, THEIR BAGGAGE, NEWSPAPERS, EXPRESS AND 
MAIL FROM LOUISBURG. FRANKLIN COUNTY, VIA N. C. ROUTE 
59 TO ITS JUNCTION WITH N. C. ROUTE 98, A DISTANCE OF 
11.3 MILES. THENCE VIA N. C. 98 TO ITS JUNCTION WITH N. C. 
264, A DISTANCE OF 1.9 MILES. THENCE VIA N. C. 264 THROUGH 
WAKE FOREST TO DURHAM, A DISTANCE OF 31.4 MILES AND 
RETURN VIA REVERSE ROUTE. TOTAL LENGTH OF MILES 44.6. 

Order 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

S. W. Ruark, Attorney, Raleigh, N. C. 

For the Protestants: 
None. 
Johnson, Commissioner: 

This application was set for hearing on the 31 st day of July, 1947, in the 
Court Room of the Utilities Commission in Raleigh, North Carolina. No 
protest was filed to the granting of the application. 



408 N. C. Utilities Commission 

The applicant offered sufficient evidence to justify a finding of convenience 
and necessity. 

It Is, Therefore, Ordered, That the application of Colonial Bus Lines in 
this docket be, and the same is hereby, granted ; that when the applicant 
has complied with all rules and regulations of this Commission franchise 
certificate of Colonial Bus Lines be amended as follows : 

To operate as motor vehicle carrier of passengers, their baggage, newspapers, 
express and mail from Louisburg via N. C. 59 to its junction with N. C. 
98; thence via N. C. 98 to its junction with N. C. 264; thence via 
N. C. 264 through Wake Forest to Durham and return. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 1st day of August, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4102 



APPLICATION OF COLONIAL BUS LINES TO TRANSPORT 

PASSENGERS, THEIR BAGGAGE, NEWSPAPERS, EXPRESS AND 

MAIL FROM LOUISBURG TO DURHAM VIA WAKE FOREST. 

Order 

Whereas, The Commission entered an Order in the above captioned docket 
on the 1st day of August, 1947, granting the application of Colonial Bus 
Lines to transport passengers, baggage, mail and express from Louisburg 
to Durham over the routes set out in the application ; 

It Is Now, Therefore, Ordered, that Carolina Coach Company permit 
immediately the buses of the Colonial Bus Lines to enter the Union Bus 
Station in the City of Durham upon such terms as other bus companies 
enter said terminal ; and the Carolina Coach Company is directed to notify 
those in charge of the bus station to receive and put on ' sale the tickets of 
Colonial Bus Lines and to receive and use the baggage checks of the 
Colonial Bus Lines to be used on baggage of passengers holding tickets over 
the Colonial Bus Lines leaving or arriving at the Durham Union Bus Station; 
and to announce the arrival and departure of all buses of the Colonial Bus 
Lines in the same manner as for all other companies using this station. 



This 1st day of August, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4102 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 409 

APPLICATION OF COLONIAL BUS LINE, ROCKY MOUNT, N. C, 
BETWEEN ROCKY MOUNT AND NASHVILLE VIA U. S. HIGHWAY 

NO. 64. 

Order 

Petition (in the form of a letter signed by Ruark and Ruark, Attorneys 
for Colonial Bus Lines) has been filed in Docket No. 4179 requesting with- 
drawal of application to transport passengers between Rocky Mount, N. C, 
and Nashville, N. C, via U. S. Highway 64; 

It Is, Therefore, Ordered, that permission be granted authorizing the 
withdrawal of the application submitted in Docket No. 4179. The same is 
hereby dismissed. 

By Order of the Commission. 

This the 27th day of February, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4179 

APPLICATION OF COLUMBUS TRANSIT COMPANY, INC., TO 
TRANSPORT PASSENGERS, THEIR GROCERIES, PACKAGES, ETC., 

FROM WHITEVILLE TO LAKE WACCAMAW, N. C, OVER 
HIGHWAY NO. 74, WHICH IS A DISTANCE OF ABOUT 11 MILES. 

Order 
Before Commissioners Hunter And Johnson. 
Appearances: For the Applicant: 

Henry A. McKinnon, Attorney, Lumberton, N. C. 
For the Protestants: 
' L. B. Hollowell, Attorney, Gastonia, N. C, 

for Queen City Coach Company 
Johnson, Commissioner: 

This application was set for hearing on the 18th day of April, 1946, in 
the Court Room of the North Carolina Utilities Commission in Raleigh, North 
Carolina. 

After conclusion of all of the evidence Honorable Henry A. McKinnon, 
Attorney for the Applicant, asked that the order be withheld in this docket 
until he could make some investigation. On July 31, 1947, this Commission 
received a letter from Honorable Henry A. McKinnon advising that it would 
be satisfactory to dismiss the application. 

It Is, Therefore, Ordered, That this application be, and the same is hereby, 
dismissed. 



This 1st day of August, 1947. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3481 



North Carolina Utilities Commission 
R. G. Johnson, Commissioner 



410 N. C. Utilities Commission 

COMMUNITY TRANSIT LINES, LIMITED PARTNERSHIP. 

Supplemental Order 

It appearing to the Commission that Community Transit Lines has complied 
with its contract with L. F. Bernard, d/b/a Gate City Transit Lines, Docket 
No. 3714, its contract with K. Herman Fulk, d/b/a City Transit Company, 
Docket No. 3720, and its contract with the Carolina Coach Company in 
Docket No. 3718, and that the sales and transfers authorized in said Dockets 
have been completed and operations by the transferees commenced ; that upon 
the completion of the transfer in Docket No. 3714 to Gate City Transit Lines 
on January 31, 1947, Community Transit Lines was authorized to cease 
operations between Kivette Drive Road and Jamestown, via Oakdale Mill ; 
and that the proposed sale and transfer of the remaining operating rights 
of Community Transit Lines to the Atlantic Greyhound Corporation is now 
pending before the Commission, as will appear by reference to Dockets 3722 
and 3848. Upon such findings, it is deemed advisable for the records of the 
Commission that the outstanding certificate of Community Transit Lines, No. 
510, be cancelled and reissued, describing only the routes now owned and 
served by Community Transit Lines, and that the matters in the various 
dockets herein named, other than Docket 3848, be concluded and the files 
of the Commission closed with respect thereto. 

It Is, Therefore, Ordered: 

1. That all matters and things in Dockets 3714, 3718, 3720 and 3722 
requiring attention of the Commission having been concluded, that the files 
of the Commission with respect thereto be closed. 

2. That franchise certificate No. 510 now owned by Community Transit 
Lines be cancelled and reissued showing the Community Transit Lines as 
owning and serving only the following routes : 

(a) Between Winston-Salem, N. C. and the North Carolina-Virginia 
State Line. From Winston- Salem, N. C. over N. C. Highway No. 8 
to junction of N. C. Highway No. 65, thence over N. C. Highway 
No. 65 to junction of U. S. Highway No. 311, thence over U. S. 
Highway No. 311 to Walnut Cove, N. C, thence over N. C. Highway 
No. 89 to junction of N. C. Highway No. 8, thence over N. C. 
Highway No. 8 to the North Carolina- Virginia State Line, and 
return over the same route. See Docket No. 2597. 

(b) Between Greensboro, N. C. and Mount Airy, N. C. From 
Greensboro, N. C. to Guilford College via Friendly Road, thence over 
County Highway to Guilford College Station on U. S. Highway No. 
421, thence over U. S. Highway No. 421 to Friendship, thence over 
N. C. Highway No. 68 to junction of U. S. Highway No. 158, thence 
over U. S. Highway No. 158 to junction of N. C. Highway No. 65, 
thence over N. C. Highway No. 65 to junction of N. C. Highway 
No. 89, and thence over N. C. Highway No. 89 to Mount Airy, N. C. 
and return over the same route. See Docket No. 2928. This route is 
granted upon the condition that neither Community Transit Lines nor 



Decisions and Adjustments of Complaints 411 

any transferee shall have the right to take on or discharge passengers 
between Guilford College Station and Greensboro in intrastate commerce. 

Issued by order of the N. C. Utilities Commission. 
This the 3rd day of March, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST : 
Chas. Z. Flack, Chief Clerk 

Dockets Nos. 3714, 3718, 3720, 3722 and 3848 



COMMUNITY TRANSIT LINES, LIMITED PARTNERSHIP, VENDOR, 
, AND CAROLINA COACH COMPANY, VENDEE. 

Order 

This proceeding coming on to be heard before the North Carolina Utilities 
Commission upon the motion of both parties for a final order herein, the 
Commission finds that the Interstate Commerce Commission by order entered 
on January 22, 1947, authorized Community Transit Lines to surrender its 
interstate operating rights over the routes involved in this proceeding, and 
the Commission further finds that both parties have now complied with the 
contract heretofore approved in all particulars, and upon such findings. 

It Is, Hereby Ordered that the operating rights described in the Commission's 
order in this proceeding under date of August 17, 1946, be transferred as 
of midnight February 28, 1947, and that, until that time. Community Transit 
Lines shall continue the existing operations and shall be responsible therefor, 
and thereafter Carolina Coach Company shall conduct the said operations and 
shall be responsible therefor. 



This the 27th day of February, 1947. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 3718 



COMMUNITY TRANSIT LINES, LIMITED PARTNERSHIP, VENDOR, 

AND K. HERMAN FULK, DOING BUSINESS AS CITY TRANSIT 

COMPANY, VENDEE. 

Order 

This proceeding coming on to be heard before the North Carolina Utilities 
Commission upon the motion of both parties for a final order herein, the 
Commission finds that the Interstate Commerce Commission by order entered 
on January 22, 1947 authorized Comrnunity Transit Lines to surrender its 



412 N. C. Utilities Commission 

interstate operating rights over the routes involved in this proceeding, and 
the Commission further finds that both parties have now compHed with the 
contract heretofore approved in all particulars, and, upon such findings 

It Is Hereby Ordered that the operating rights described in the Commission's 
order in this proceeding under date of August 17, 1946 be transferred as of 
midnight January 31, 1947, and that, until that time. Community Transit Lines 
shall continue the existing operations and shall be responsible therefor, and 
thereafter City Transit Company shall conduct the said operations and shall 
be responsible therefor. 

This the 31st day of January, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3720 

SALE AND TRANSFER OF FRANCHISE CERTIFICATE NO. 510 BY 

COMMUNITY TRANSIT LINES TO ATLANTIC GREYHOUND 

CORPORATION. 

Order 

This cause arises upon joint application of Daisy V. Gilmer, General Partner, 
and Wachovia Bank and Trust Company, administrator of estate of Powell 
Gilmer as Limited Partner, vendors, trading as Community Transit Lines, 
and Atlantic Greyhound Corporation, vendee, for approval of proposed sale 
and transfer by the said vendors to the said vendee of all rights, title and 
interest of the said vendors under Franchise Certificate No. 510 to the following 
franchise routes described in said Certificate ; to wit, 

(a) Between Winston-Salem, N. C, and the North Carolina-Virginia 
State Line. From Winston- Salem, N. C, over N. C. Highway No. 
8 to junction of N. C. Highway No. 65, thence over N. C. Highway 
No. 65 to junction of U. S. Highway No. 311, thence over U. S. 
Highway No. 311 to Walnut Cove, N. C, thence over N. C. Highway 
No. 89 to junction of N. C. Highway No. 8, thence over N. C. Highway 
No. 8 to the North Carolina-Virginia State Line, and return over the 
same route. See Docket No. 2597. 

(b) Between Greensboro, N. C. and Mount Airy, N. C. From 
Greensboro, N. C, to Guilford College via Friendly Road, thence 
over County Highway to Guilford College Station on U. S. Highway 
No. 421, thence over U. S. Highway 421 to Friendship, thence over 
N. C. Highway No. 68 to junction of U. S. Highway No. 158, thence 
over U. S. Highway 158 to junction of N. C. Highway No. 65, thence 
over N. C. Highway No. 65 to junction of N. C. Highway No. 89, 
and thence over N. C. Highway No. 89 to Mount Airy, N. C. and 
return over the same route. See Docket No. 2928. This route is 
granted upon the condition that neither Community Transit Lines 
nor any transferee shall have the right to take on or discharge 



Decisions and Adjustments of Complaints 413 

passengers between Guilford College Station and Greensboro in intra- 
state commerce. 

Reference: Order dated March 3, 1947, in Dockets Nos. 3714, 3718, 
3720, 3722 and 3848. 
Upon consideration of the application herein the Commission finds that the 
Atlantic Greyhound Corporation, vendee, is well qualified to perform the 
service heretofore performed by the said vendors under said Certificate and 
is able, ready and willing to perform such service that said sale and transfer 
is and will be in the public interest and should be approved. 

It Is, Therefore, Ordered : 

1. That the proposed sale and transfer by the said vendors to the said 
vendee of the operating rights herein above set out and particularly described 
itj Certificate No. 510 be and same is hereby approved to become effective 
on the first day of August, 1947, and that the franchise certificate of the said 
vendee be amended to include the rights herein above set out. 

2. That the franchise certificate of the said vendors be cancelled as of 
the first day of August, 1947. 



By Order of the Commission. 
This 22nd day of July, 1947. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 



North Carolina Utilities Commission 
Fred C. Hunter, Commissioner 



Docket No. 3848 



PETITION FOR APPROVAL OF SALE AND TRANSFER OF 

OPERATING RIGHTS BY E. L. BOST, D/B/A CONCORD MOTOR 

COACH COMPANY, CONCORD, NORTH CAROLINA, TO CONCORD 

TRANSIT LINES, INC., CONCORD, NORTH CAROLINA. 

Order 

A joint petition has been filed with the Commission by E. L. Bost, 
d/b/a Concord Motor Coach Company, as vendor, and Concord Transit Lines, 
Inc., as vendee, for approval of sale and transfer by the said vendor to 
the said vendee of certain operating rights for the transportation of passengers 
over and upon the streets of the City of Concord and its environs and fully 
described and set forth in Docket No. 4410. 

Upon consideration of the petition, the Commission finds no reason why 
the proposed sale and transfer should not be approved insofar as the Commission 
is authorized to do under the provisions of G. S. 62-107 ; that is to say, 
insofar as the said sale and transfer of the operating rights under said 
application filed in Docket No. 4410 are concerned ; but that such approval 
should not be construed as a finding, or as any representation by the Commission 
as to the value of the property included in said sale for rate-making purposes, 



414 N. C. Utilities Commission 

or for any other purpose, but merely to give validity as required by statute 
to the sale and transfer of said operating rights. 

It Is, Therefore, Ordered: 

(1) That the proposed sale and transfer by E. L. Bost, d/b/a Concord 
Motor Coach Company to Concord Transit Lines, Inc., of the operating rights 
referred to in the application herein, and all rights, title and interest therein, 
be approved, said operating rights being particularly described as follows : 

(a) Over and upon the streets of the City of Concord and its 
environs. 

(2) That this order shall constitute a certificate to so operate until a 
formal certificate shall have been prepared and issued by the Commission. 

(3) That this order shall not become effective until notice to the Commission 
in w^riting by the' vendor and the said vendee that said sale has been 
consummated and that the said vendee is ready to begin operations ; provided, 
however, that said operation shall not commence until the said vendee shall 
have first filed with the Commission a description of the equipment to be 
used in said operation, together with insurance covering the same, and the 
filing of tariffs and schedules as required by the Commission. 

By Order of the Commission. 
This 1st day of July, 1948. 



R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4410 



APPLICATION OF CONCORD TRANSIT LINES, INC.. CONCORD, 

NORTH CAROLINA, TO TRANSPORT PASSENGERS OVER 

VARIOUS STREETS IN THE CITY OF CONCORD. 

Order 

On May 29, 1948, Applicant filed application for franchise rights to transport 
passengers over various streets in the City of Concord. On July 21, 1948, 
Applicant advised the Commission in writing that it desired to withdraw its 
application and requested dismissal thereof. 

It Is, Therefore, Ordered, That said application be withdrawn and dismissed. 

By Order of the Commission. 

This 28th day of July, 1948. 

R. G. Johnson, Commissioner 
ATTEST: 
Chas. Z. Flack, Chief Clerk 

Docket No. 4405 



Decisions and Adjustments of Complaints 415 

APPLICATION OF J. ALLEN ARNDT, T/A CONOVER-NEWTON 
BUS LINE, FOR AUTHORITY TO TRANSPORT PASSENGERS 
ALONG THE STREETS OF THE TOWN OF NEWTON AND TO 
MOUNT OLIVE CHURCH, A DISTANCE OF L4 MILES EAST OF 

NEWTON. 



Order 



Appearances : 



For the Applicant: 

W. J. Sherrod, Newton, North CaroHna. 

For the Protestants : 

Shearon Harris, Charlotte, North Carolina, appearing for Queen 
City Coach Company. 

Johnson, Com:\iissioner: This application was heard at the Buncombe County 
Courthouse in Asheville on the tenth day of ]March, 1948, at ten a. m. 
Petition of intervention was filed by Queen City Coach Company on the 
third day of ^.larch, 1948, and it was admitted as a protestant. 

The applicant proposes to perform city service within the City of Newton 
and to extend beyond the City Limits of Newton for a distance of 1.4 miles 
to Mount Olive Church. The applicant filed with the Commission a copy 
of the original franchise issued by the City of Newton and a resolution of 
the City authorities of Newton endorsing the present application, and ample 
testimony was offered to show convenience and necessity. 

It Is, Therefore, Ordered That the applicatiwi of J. Allen Arndt, t/a 
Conover-Newton Bus Line, be, and the same is hereby, granted and that, 
when the applicant has complied with all the rules and regulations of this 
Commission, his franchise certificate be amended to include the following : 

To transport passengers and their baggage over the following streets in 
the Town of Newton : South College Avenue, South Brady Avenue, East H 
Street, South Ashe Avenue, West E Street, \\>st D Street, South Caldwell 
Street, South Ervin Avenue. North Davis Avenue, East Rankin Avenue, East 
20th Street, Thomas Street, North Alain Street. West C Street, and from 
East Rankin Avenue at Newton City Limits to Alount Olive Church, a 
distance of 1.4 miles as shown on the N. C. State Highway Public W^orks 
Commission 1944 Catawba County Map. and return. 

This the 15th day of June, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, C ommissioner 
R. G. Johnson, C ommissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4191 



416 N. C. Utilities Commission 

APPLICATION OF LUTHER V. DIXON, BOX 592, ROXBORO, NORTH 
CAROLINA, FOR AUTHORITY TO OPERATE A PASSENGER 
SERVICE FROM ROXBORO OVER MAIN STREET EXTENDING 
BEYOND THE CORPORATE LIMITS SOUTH OVER HIGHWAY 
ROUTE NO. 501 TO SOMERSET MILL; OVER HIGHWAY ROUTE 
NO. 57 TO HURDLE MILLS AND THENCE TO CALDWELL SCHOOL 
AND TO HILLSBORO; EXTENDING NORTH OF THE CORPORATE 
LIMITS OVER ROUTE NO. 501 TO LONGHURST VILLAGE, CAVEL 
VILLAGE, AND (OVER THE HIGHWAY WHICH JOINS NO. 501 
TO THE ROXBORO-CLUB LAKE ROAD) TO CARVER'S STORE; 
OVER COURT STREET AND CHUB LAKE STREET; THENCE 
OVER THE ROXBORO-CHUB LAKE PUBLIC ROAD TO CHUB LAKE 

AND CEFFO. 

Order 

Appearances : 
For the Applicant: 

F. O. Carver, Attorney at Law, Roxboro, North CaroHna 

For the Protestant : 
None 

Johnson, Commissioner: This apphcation was called for hearing on the 
twenty-sixth day of February, 1948, in the Courthouse at Winston- Salem, 
North Carolina. Protests were filed by Virginia Stage Lines, Inc., and 
Carolina Coach Company of Virginia in apt time. 

The application proposed service from Roxboro over Main Street and 
Highway 501 to Somerset Mill ; over Highway 57 to Hurdle Mills, Caldwell 
School, and Hillsboro; over U. S. Route 501 to Longhurst Village, Ca-Vel 
Village, and Carver's Store; over Court Street and Chub Lake Street to 
Chub Lake and Ceffo. The applicant stated that he was negotiating with 
the Carolina Coach Company of Virginia and Virginia Stage Lines, Inc., 
for operating rights over some of the routes applied for and requested that 
the order in this case be withheld until this agreement had been reached 
and approved by the Commission. 

The Commission on the tenth day of April, 1948, approved the operating 
rights over U. S. Highway 501 from Roxboro to Somerset Mill and from 
Roxboro over U. S. 501 to Longhurst Village and Ca-Vel Village. The 
applicant further requested that when the operating agreement had been 
signed and approved by the Commission that he be permitted to withdraw 
that part of the application over the routes covered by the contract or 
agreement. The applicant offered ample testmiony to show convenience and 
necessity over all other routes applied for. 

It Is, Therefore, Ordered: that the application of Luther V. Dixon be 
and the same is hereby granted to operate over the following routes : from 
Roxboro over Highway 57 to Hurdle Mills, Caldwell School, and Hillsboro 
and from Highway 501 over an unnumbered road to Carver's Store and from 
Roxboro over Court Street and Chub Lake Street and the Roxboro-Chub 
Lake public road to Chub Lake and Ceffo and return and that a franchise 



Decisions and Adjustments of Complaints 417 

certificate be issued to the applicant when he has compUed with all the 
rules and regulations of this Commission. 

By Order of the Commission. 
This 13th day of April, 1948. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST: 

Chas. Z. Flack, Chief Clerk ■ 

Docket No. 4217 

APPLICATION OF DUKE POWER COMPANY FOR APPROVAL OF 

REVISION OF ROUTES OF ITS STREET BUS TRANSPORTATION 

SYSTEM IN THE CITY OF CHARLOTTE AND VICINITY. 

Order 

A petition has been filed with the Commission in the above matter in 
which it is alleged that the applicant holds certain franchise rights by virtue 
of an Act of the Legislature, Chapter 32, Laws of 1883, and also by virtue 
of certain orders of the N. C. Utilities Commission in Docket Nos. 750, 
1064, 1128 and 2960. 

It appears that the petitioner now desires to revise the routes over which 
it operates in Charlotte and vicinity which involve service over certain streets 
and highways ; and in certain areas not heretofore served, and also desires to 
suspend service over certain streets and highways, all of which are described 
in the petition; and it further appears that said proposed routes have been 
presented to and approved by the City of Charlotte by resolution adopted by 
the City Council of said City at a regular meeting held on February 25, 1948 ; 

It Is, Therefore, Ordered: 

1. That any and all valid franchises which may have heretofore been granted 
by the North Carolina Utilities Commission or its predecessor, or by any Act 
of the Legislature be, and the same are hereby, approved, and certificate 
issued therefor, and that the proposed change in routes as set forth in said 
petition, and as approved by said resolution of the City Council of the City 
of Charlotte, be, and the same hereby is, approved, subject to the terms 
of said resolution of said City Council. 

2. That this order shall constitute a certificate of public convenience and 
necessity for the operations over the streets and highways set forth in said 
petition. 

3. That this matter be held open for such further orders in the premises 
as the Commission may deem necessary and appropriate. 

By Order of the Commission. 



This the 7th day of April, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4331 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



418 N. C. Utilities Commission 

APPLICATION OF DUKE POWER COMPANY FOR APPROVAL OF 
REVISION OF ROUTES OF ITS STREET BUS TRANSPORTATION 
SYSTEM IN THE CITIES OF SALISBURY, SPENCER AND EAST 

SPENCER. 

Order 

A petition has been filed with the Commission in the above matter in which 
it is alleged that the applicant holds certain franchise rights by virtue of a 
certain order of the N. C. Utilities Commission in Docket Nos. 1312 and 2960. 

It appears that the petitioner now operates an integrated street bus transpor- 
tation system in the Cities of Salisbury, Spencer and East Spencer, and that 
the petitioner desires to revise the routes over which it operates in Salisbury, 
involving service over certain streets and in certain areas not heretofore served, 
all of which is described in the petition ; and it further appears that the 
revised routes have been presented to and approved by the City of Salisbury 
by resolution of the city council of said city adopted at a regular session of 
said city council held February 27, 1948. 

It Is, Therefore, Ordered: 

1. That any and all valid franchises which have heretofore been granted by 
the N. C. Utilities Commission or its predecessor, or by the Cities of Salisbury, 
Spencer and East Spencer, be and the same are hereby, approved, and certificate 
issued therefor, and that the proposed change in routes as set forth in said 
petition and in said resolution of said city council be and the same hereby 
is approve'd subject to the terms of said resolution of said city council. 

2. That this order shall constitute a certificate of public convenience and 
necessity for the operation over the streets and highways set forth in said 
petition. 

3. That this matter be held open for such further orders in the premises 
as the Commission may deem necessary and appropriate. 



By Order of the Commission. 
This the 7th day of April, 1948. 



ATTEST: 

jChas. Z. Flack, Chief Clerk 

Docket No. 4332 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



Decisions and Adjustments of Complaints 419 

APPLICATION OF DURHAM-DUNN BUS COMPANY FOR FRAN- 
CHISE TO OPERATE AS AN ALTERNATE ROUTE TO DURHAM, 
N. C. FROM THE JUNCTION OF U. S. HIGHWAYS NOS. 1 AND 
64 JUST NORTH OF THE TOWN OF APEX OVER U. S. HIGHWAY 
NO. 64 WEST TO ITS JUNCTION WITH NEW AND RELOCATED 
N. C HIGHWAY NO. 55, THENCE NORTH OVER THAT HIGHWAY 
TO THE DURHAM CITY LIMITS, AND RETURN OVER THE SAME 

ROUTE. 

Order 
The Commission is in receipt of petition to amend application to read according 
to the caption herein. 

It Is, Therefore, Ordered: 

That the motion to amend be allowed and that the amendment is the same 
as shown in the caption herein. 

By Order of the Commission. 

This the 7th day of September, 1948. 

R. G. Johnson, Commissioner 
ATTEST : 

Chas. Z. Flack, Chief Clerk 
Docket No. 3384 .... 



APPLICATION OF DURHAM-DUNN BUS COMPANY FOR 
AUTHORITY TO OPERATE AS MOTOR VEHICLE CARRIER OF 
PASSENGERS FROM THE JUNCTION OF U. S. HIGHWAYS NOS.l 
AND 64 JUST NORTH OF THE TOWN OF APEX, OVER U. S. 
HIGHWAY NO. 64 WEST TO ITS JUNCTION WITH NEW AND 
RELOCATED N. C. HIGHWAY NO. 55; THENCE NORTH OVER 
THAT HIGHWAY TO THE DURHAM CITY LIMITS, AND RETURN 
OVER THE SAME ROUTE. 

Order 
Before Commissioner Johnson. 

Appearances: For the Applicant: 

J. W. Bunn, and Banks Arendell, Attorneys,. 
Raleigh, N. C. 

For Protestants : None. 

Johnson, Commissioner: 

This application was heard on the 10th day of November, 1948, in the 
Hearing Room of the Utilities Commission in Raleigh. Affidavit of publication 
of notice of hearing was filed on October 29, 1948. 

For several years the applicant has been operating between Apex and 
Durham over dirt roads. N. C. Highway No. 55 has been recently hardsurfaced 
and the applicant now seeks authority to serve the same general communities 
by operating over N. C. Highway 55. The applicant offered several witnesses 



420 N. C. Utilities Commission 

who testified as to convenience and necessity along this foute. Convenience 
and necessity having been found; 

It Is, Therefore, Ordered, That this appHcation be, and the same is hereby, 
granted; that when apphcant has comphed with all rules and regulations of 
the Commission its present franchise certificate be amended as follows: 

To operate as motor vehicle carrier of passengers, their baggage, mail and 
light express, from the junction of U. S. Highway No. 1 and U. S. Highway 
64, just North of the Town of Apex, over U. S. 64 west to its junction with' 
new and relocated N. C. Highway 55 ; thence over said N. C. Highway 55 
to Durham, and return. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



This 10th day of November, 1948. 



ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 3384 



APPLICATION OF DURHAM-DUNN BUS COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM ANGIER VIA N. C. HIGHWAY 210 TO HARNETT 
AND JOHNSON COUNTY LINE, IN A NORTHERLY DIRECTION 
VIA MYATT'S POND AND WILLIAMS X-ROADS INTERSECTING 
U. S. HIGHWAY 15-A APPROXIMATELY FOUR MILES SOUTH OF 
RALEIGH CITY LIMITS; THENCE ALONG U. S. HIGHWAY 15-A 
IN A NORTHERLY DIRECTION 1.4 MILES; THENCE IN A WEST- 
ERLY DIRECTION OVER A HARDSURFACED COUNTY HIGHWAY 
BORDERING THE RALEIGH AIRPORT, THE RALEIGH GOLF 
ASSOCIATION COURSE, AND BY THE COLONIAL PINES HOTEL, A 
DISTANCE OF 2.1 MILES, TO THE INTERSECTION OF THE HOLLY 
SPRINGS-RALEIGH COUNTY HIGHWAY, COMMONLY KNOWN 
AS THE RHAMKATTE ROAD; THENCE THREE MILES TO THE 
RALEIGH CITY LIMITS; THENCE OVER RALEIGH CITY STREETS 
TO THE RALEIGH BUS STATION. 

Order 
Appearances : 

For Applicant: 

Bunn & Arendell, Attorneys at Law, Raleigh 

For Protestants: 

Glen B. Holding, of Bailey, Holding & Langston, Attorney 
for the Atlantic Greyhound Corporation, Raleigh 
Winborne, Chairman 

This Matter came on for hearing and was heard on September 19, 1947, 

in the City of Raleigh. Affidavit of Publication of Notice was duly filed. 

The applicant offered the testimony of many witnesses tending to show the 

need for this service and tendered a large number of witnesses who attended 



Decisions and Adjustments of Complaints 421 

the hearing expecting to testify for the applicant. The substance of the 
testimony offered was that the proposed service would duplicate existing 
service for only a very short distance and that the highways over which 
it would operate would serve communities between Raleigh and Angier, which 
now have no public transportation facilities, and that there was a great need 
for the service proposed. 

The protestant, Atlantic Greyhound Corporation, through its attorney Mr. 
Glen B. Holding stated that his client was only interested in the schedules 
which the applicant proposed to operate, and offered Mr. Lynn of the Carolina 
Coach Company, who testified as to the various schedules now being operated 
from Angier and Dunn to Raleigh by the Carolina Coach Company and the 
Atlantic Greyhound Corporation. The witness Lynn contended that there was 
ample service between Angier and Raleigh but admitted that there was no 
service over the greater part of the highways for which service was applied. 

Upon consideration of all of the testimony, the Commission finds as a fact 
that public convenience and necessity has been shown and that the applicant 
should be given a franchise. 

Wherefore, It Is Ordered, that upon a compliance with the rules and 
regulations of this Commission the present franchise certificate of the applicant 
shall be amended to include the right to operate buses for the transportation 
of passengers and their baggage, light express, mail and newspapers from 
Angier via N. C. highway 210 to Harnett and Johnson County line, in a 
northerly direction via Myatt's Pond and Williams X-Roads to intersecting 
U. S. highway 15- A approximately four miles south of Raleigh City Limits; 
thence along U. S. highway 15-A in a northerly direction 1.4 miles; thence 
in a westerly direction over a hardsurfaced county highway bordering the 
Raleigh Airport, the Raleigh Golf Association Golf Course, and by the 
Colonial Pines Hotel, a distance of 2.1 miles, to the intersection of the Holly 
Springs-Raleigh county highway, commonly known as the Rhamkatte Road; 
thence three miles to the Raleigh City Limits; thence over Raleigh city 
streets to the Raleigh Bus Station, and return. 



I 



This the 24th day of September, 1947. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4146 



422 N. C. Utilities Commission 

APPLICATION OF DURHAM-DUNN BUS COMPANY FOR 
FRANCHISE CERTIFICATE TO OPERATE AS MOTOR VEHICLE 
CARRIER FROM ANGIER, N. C, VIA N. C. HIGHWAY 210 TO 
HARNETT AND JOHNSON COUNTY LINE, IN A NORTHERLY 
DIRECTION VIA MYATT'S POND AND WILLIAMS X-ROADS 
INTERSECTING U. S. HIGHWAY 15-A APPROXIMATELY FOUR 
MILES SOUTH OF RALEIGH CITY LIMITS; THENCE ALONG U. S. 
HIGHWAY 15-A IN A NORTHERLY DIRECTION 1.4 MILES; THENCE 
IN A WESTERLY DIRECTION OVER A HARDSURFACED COUNTY 
HIGHWAY BORDERING THE RALEIGH AIRPORT, THE RALEIGH 
GOLF ASSOCIATION GOLF COURSE, AND BY THE COLONIAL 
PINES HOTEL, A DISTANCE OF 2.1 MILES, TO THE INTERSEC- 
TION OF THE HOLLY SPRINGS-RALEIGH COUNTY HIGHWAY, 
COMMONLY KNOWN AS THE RHAMKATTE ROAD; THENCE 
THREE MILES TO THE RALEIGH CITY LIMITS; THENCE OVER 
RALEIGH CITY STREETS TO THE RALEIGH BUS STATION. 

Order Overruling Exceptions 
This cause comes before the full Commission upon Exceptions as appear 
of record filed by Atlantic Greyhound Corporation to the Order made herein 
on September 24, 1947. Upon reconsideration of the entire record, the Commis- 
sion is of the opinion and finds that the Order made herein is supported by 
the testimony and that the same is, and will be, in the public interest. 

It Is, Therefore, Ordered that said Exceptions, and each of them, filed 
in this cause by Atlantic Greyhound Corporation, be, and the same are 
hereby, overruled. 

This the 10th day of October, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 
ATTEST : 

Chas. Z. Flack, Chief Clerk 
Docket No. 4146 

APPLICATION OF DURHAM-DUNN BUS COMPANY FOR 
AUTHORITY TO TRANSPORT PASSENGERS, THEIR BAGGAGE, 
MAIL, NEWSPAPERS, AND LIGHT EXPRESS IN THE SAME 
VEHICLE, OVER HARD SURFACE COUNTY ROAD BETWEEN 
DUNCAN, N. C, AND FUQUAY SPRINGS, N. C, AND RETURN. 

Order 
Before Commissioner Johnson. 

Appearances: For the Applicant: 

Bunn and Arendell, Attorneys, Raleigh, N. C. 
For Protestants : 
None. 
Johnson Commissioner: 

This cause came on for hearing in the Courtroom of the Utilities Commission 
in Raleigh, North Carolina, at 10:00 A. M., on the 6th day of August, 1948, 
No protest v^as filed to the granting of the application. 



Decisions and Adjustments of Complaints 423 

From the evidence offered it was found that the area to be served between 
Duncan, N. C, and Fuquay Springs, N. C, is a thickly populated community; 
that approximately five hundred or six hundred persons live in and around 
Duncan and are without public transportation; that Fuquay Springs, N. C, 
is the trading center for this community and that approximately one hundred 
of the inhabitants along the route to be served work in an industrial plant 
and in other business concerns in Fuquay Springs. Convenience and necessity 
having been found ; 

It Is, Therefore, Ordered, That the application of Durham-Dunn Bus 
Company in this docket be, and the same is hereby, granted ; that when 
applicant has complied with all rules and regulations of this Commission the 
present franchise certificate of Durham-Dunn Bus Company be amended as 
follows : 

To transport passengers, their baggage, mail, newspapers, and light 
express in the same vehicle over hard surface county road between 
Duncan, N. C, and Fuquay Springs, N. C. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 



i 



This 6th day of August, 1948. 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 4440 



APPLICATION OF DURHAM TRANSPORTATION CORPORATION 

FOR FRANCHISE TO OPERATE PASSENGER BUSES FROM 

DURHAM, OXFORD, ROXBORO AND CREEDMOOR TO AND FROM 

CAMP BUTNER IN DURHAM, PERSON AND GRANVILLE 

COUNTIES. 

Order 
Winborne, Chairman 

On April 7, 1942, this Commission issued an order authorizing the Durham 
Transportation Corporation to operate buses from Durham to Camp Butner 
over Highway No. 15 to Creedmoor and then into the camp. 

The Atlantic Greyhound Corporation already held a franchise over Highway 
No. 15 from Durham via Creedmoor to Oxford, and it likewise desired to 
serve Camp Butner. 

On April 28, 1942, the Commission amended its order of April 7, 1942, 
restricting the operation of the Atlantic Greyhound Corporation to the camp, 
and providing that: "Said Atlantic Greyhound Corporation shall operate no 
schedule between Durham and Camp Butner, except such schedules as it 
now operates or which it may hereafter be authorized to operate between 
Durham and Henderson, North Carolina." 

On May 4, 1942, the Atlantic Greyhound Corporation filed Exceptions to 
the amended order of this Commission restricting its operation to the said 
Camp Butner. These Exceptions were purposely not passed upon at the time 



424 N. C. Utilities Commission 

for the reason that the Commission was negotiating with the camp authorities 
concerning what schedules the camp desired. At this time, however, following 
the end of the war and the conversion of the camp from a military to a 
hospital unit and the cessation of the service by the Durham Transportation 
Corporation, there appears to the Commission no longer any need for the 
restrictions heretofore imposed upon the service of the Atlantic Greyhound 
Corporation to the camp. 

Wherefore It Is Ordered, That the restrictions imposed in the Commission's 
amended order of April 28, 1942 be and the same are hereby removed. 

This the 13th day of February, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 2360 

APPLICATION OF DUTCH COVE-CANTON feUS LINE, CANTON, 
TO TRANSPORT PASSENGERS OVER DUTCH COVE ROAD TO 
CANTON CITY LIMITS; OVER DUTCH COVE ROAD TO GIBSON- 
TOWN; THENCE TO WILSON'S STORE, PRESLEY'S STORE, 
FISHER'S STORE, HYDES STORE AND B. G. BURNETT'S 

RESIDENCE. 

Order Dismissing Application 
This cause having been called for hearing at Asheville, North Carolina, 
on the 19th day of August, 1948, pursuant to notice to the applicant and the 
applicant having failed to appear or otherwise communicate with the Commis- 
sion, 

It Is, Therefore, Ordered, that said application be, and the same is hereby 
dismissed. 



By Order of the Commission. 

This the 31st day of August, 1948. 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

Docket No. 4106 



Fred C. Hunter, Comm,issioner 



Decisions and Adjustments of Complaints 425 

FRANCHISE CERTIFICATE NO. 581, IN THE NAME OF EDWARDS 
AND MORPHEW, ROBBINSVILLE, N. C, OVER AN UNNUMBERED 
HIGHWAY FROAl ROBBINSVILLE TO CHEOAH, THENCE TO STE- 
COAH, THENCE TO POCAHUNTUS, THENCE TO BRYSON CITY 
AND RETURN, WITH CLOSED DOORS OVER THE PORTION OF 
SAID ROUTE NEAR BRYSON CITY OVER WHICH SMOKY MOUN- 
TAIN STAGES, INC., HOLDS FRANCHISE RIGHTS. 

Order 
Cancelling 
Certificate 

The records of the Utihties Commission show that an Order was entered on 
July 6, 1945, granting the right to operate upon compliance with conditions set 
out in the order. On September 21, 1945, Certificate No. 581 was issued and 
operation begun. On December 27, 1945, a request in writing was made for 
permission to suspend operations until April 1, 1946, due to road conditions. 
On December 31, 1945, authority was given for the suspension of operations 
until April 1, 1946. On March 20, 1946, a request was made for the further 
extension until June 1, 1946, and a further suspension of operations was granted 
until June 1, 1946. On July 5, 1946, another request was made for a thirty 
day extension, which was granted on July 8, 1946. That Edwards and Morphew, 
insofar as the records of the Utilities Commission disclose, have failed to 
operate for a period of thirty days since the extension of July 8, 1946, and have 
permitted their insurance policy covering their equipment to expire and have 
failed to comply with other requirements necessary for the operation of said 
franchise. 

It Is Hereby Ordered, that said Franchise Certificate No. 581 be, and the 
same is hereby, cancelled, and 

It Is Further Ordered that a copy of this Order be mailed to Edwards and 
Morphew, Robbinsville, N. C, by receipted, registered mail, a copy to R. B. 
Morphew, Robbinsville, N. C, and a copy to Earl Edwards, Robbinsville, N. C. 

This the 18th day of August, 1947. 

Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

STATE OF NORTH CAROLINA ■ 

COUNTY OF WAKE 

This is to certify that the foregoing is an exact copy of the Order Cancelling 
Certificate entered August 18th, 1947. 

This the 18th day of August, 1947. 

Chas. Z. Flack, Chief Clerk 

Docket No. 3327 



426 N. C. Utilities Commission 

APPLICATION OF ELIZABETH CITY BUS LINE FOR AUTHORITY 
TO OPERATE A MOTOR VEHICLE CARRIER OF PASSENGERS 
BETWEEN ELIZABETH CITY AND OLD TRAP VIA CAMDEN, 
SHILOH, INDIANTOWN AND RIDDLE. 

Before Commissioner Johnson. 

Appearances: For the Applicant: 

J. W. Jennette, Elizabeth City, N. C. 

For Protestants : None. 
Johnson, Commissioner: 

This application was heard on the 27th day of September, 1948, in Raleigh, 
North Carolina. Affidavit of publication of notice of hearing was filed. This 
application was originally set for hearing on the 12th day of August, 1948, in 
the Pasquotank Courthouse in Elizabeth City, North Carolina. At that time 
the applicant had failed to advertise as required by law and the case was con- 
tinued to September 27, 1948, at Raleigh. 

Ample evidence having been offered to show convenience and necessity ; 

It Is Therefore, Ordered, That this application be, and the same is hereby, 
granted; that when applicant has complied with all the rules and regulations 
of the Commission, franchise certificate be issued to Elizabeth City Bus Line 
as follows: 

To transport passengers, their baggage, mail and light express, from Elizabeth 
City over U. S. Highway 158 to Camden; thence from Camden over N. C. 
Highway 343 to Old Trap; thence from Old Trap over N. C. 343 to the 
intersection of a hardsurfaced road leading northward ; thence over said hard- 
surfaced road to Riddle and Indiantown ; thence over an unnumbered hard- 
surfaced road from Indiantown to Shiloh, and return over the same route; 
with closed doors from Elizabeth City to Camden along U. S. Highway 158, 
the applicant not to pick up or discharge passengers within one hundred yards 
of U. S. Highway 158. 



This 9th day of November, 1948. 



Stanley Winborne, Chairman 
Fred C. Hunter, Commissioner 
R. G. Johnson, Commissioner 

ATTEST: 

Chas. Z. Flack, Chief Clerk 

DOCKET NO. 4384 

PETITION BY MRS. S. M. GIBBS, D/B/A ENGELHARD-WASHING- 
TON BUS CO., FOR TEMPORARY SUSPENSION BETWEEN 
ENGELHARD AND COLUMBIA, FOR A PERIOD OF NINETY DAYS. 

Order 

It appears from a letter (treated as petition), dated May 3rd 1948, and 

filed with the Commission May 4th 1948, that the road between Engelhard 

and Columbia is impassable, and that this condition will continue for about 
ninety days. 



Decisions and Adjustments of Complaints 427 

Upon consideration of said petition, the same is hereby approved, and said 
Mrs. S. M. Gibbs, d/b/a Engelhard-Washington Bus Co., is authorized to 
suspend temporarily services between Engelhard and Columbia for a period 
of ninety days. 

By Order of the Commission. 
This the 19th day of May 1948. 



R. G. Johnson, Commissioner 



ATTEST : 

Chas. Z. Flack, Chief Clerk 

Docket No. 1602 



PETITION BY MRS. S. M. GIBBS, D/B/A ENGELHARD-WASHING- 
TON BUS COMPANY, FOR TEMPORARY SUSPENSION BETWEEN 
ENGELHARD AND COLUMBIA, FOR A PERIOD OF NINETY DAYS 
FROM AUGUST 20, 1948. 

Order 

It appears from a letter (treated as petition), dated July 26, 1948, and 
filed with the Commission July 28, 1948, that the road between Engelhard 
and Columbia is still under construction and that the same is impassable, 
and that this condition will continue for the approxi